Summary

Goldman Sachs, or Goldmine Sachs, as some call it, reported a record $13.4 billion dollar profit last year. But just how is that money made?

The CEO of Goldman, Lloyd Blankfein, claims that the bank is doing “God’s work,” explaining “We help companies to grow by helping them to raise capital.” But industry insiders are not yet convinced.

According to public records of Goldman’s financial filings, only a tenth of its revenues came from investment banking last year and more than three-fourths from trading for its own account.

In this video, the first in a two part series about unraveling the profit puzzle at Goldman, Economic Correspondent Paul Solman talks to industry insiders and former Goldman executives to find out the real scoop.

Merchant of Venice Link

Business Ethics in The Merchant of Venice

Perhaps one of the most debated characters in Shakespeare’s plays is that of Shylock, the Jewish money-lender. In one respect, Shylock is depicted in the play as a ruthless miser who hoards his wealth and love and in the end, is left with nothing. However, looking at the situation from a different perspective, Shylock is not evil, but a victim of prejudice and circumstance and his portrayal accurately depicts the situation that a Jew would have experienced in Venice in the 16^th century. The Catholic Church dominated Italy at that time and Jews were forced into the profession of money-lending because the idea of making a profit from “investment banking” was seen as immoral.

The world is now experiencing a global economic crisis and the topic of ethics in business is more than relevant.

Question to consider:

Is the earning a profit by charging interest ethical?