Talk about hypocrisy, Goldman Sachs is currently in the process of letting twenty of their analysts go, after it was discovered that these analysts had cheated on their internal Goldman Sachs training tests. These employees were part of the enterprise’s securities divisions and were located not just in New York and London, but in many of their offices worldwide. Many of these employees have already been fired, while others are still packing their bags.
According to insiders, it is a fairly common practice for bankers to “help” each other with the training and tests that are an everyday part of their jobs. Because these tests are often repetitive and can take up a lot of a banker’s time, cheating has almost become an everyday practice. While many banks have let this slide in the past, increased pressure from regulators has forced many banks to take action against those who cheat on their tests.
HOW WAS IT BAD? (AND JUST PLAIN DUMB).
The cheating analysts, who took their tests in different rooms, used their company-issued workstations to search for answers to questions the exam, according to Goldman sources who didn’t wish to be named. Think about that for a minute, when things like NoNeedToStudy exist these masters of the universe used that same computer they were taking tests on (and are no doubt monitored by Goldman) to Google their answers! Come on.
Independent parties with knowledge of the bank’s practices have said that any inappropriate activity within the banking culture should be swiftly dealt with, as the current environment is very intolerant to misbehavior in the banking sector. While this could lead to many more firings in the future, it could also lead to more selective and effective hiring practices. The fact that so many junior bankers were able to participate in this type of behavior for so long indicates that there has been a serious lack of oversight and proper training and mentorship in the firm for many years. Goldman employees showed some lack of creativity, instead of relying on their colleagues for help with tests they should have sought professional academic assistance.
While Goldman Sachs is still listed as one of the best companies to work for by Fortune, it is difficult to ignore that there is definitely a culture within the company that promotes cheating. Consultants have stated that it is easy to blame the young people who actually cheated on their tests, but that much of the blame lies with the people who have been training those young bankers and who might not have made it clear or did not properly reprimand their employees for misbehavior.
Why are these bankers being fired for cheating, especially considering that it is supposedly a common practice amongst Goldman Sachs bankers? Largely because the tests are designed to test the knowledge that these employees have to use on a daily basis. If they are cheating on their tests, it is unlikely that they actually have the knowledge they need to perform. BIG SURPRISE.
Goldman Sachs was once one of the country’s most profitable banks and was famous for making its investors a great deal of money. Earnings have suffered over the last couple of years, and Goldman Sachs has recently fallen to have the lowest price-to-earnings ratio of all of the country’s big banks.