Goldman May Shrink Fixed-Income Trading Unit as Blankfein Defends Buybacks

The video discusses the challenges faced by Goldman Sachs under new CEO David Solomon, focusing on the fixed income trading business and compliance issues. It highlights internal problems, such as a dismissed trader's allegations, and the company's efforts to maintain its public image. The video also covers the debate on share buybacks, with opinions from industry leaders like Lloyd Blankfein and Jamie Dimon, and political figures like Bernie Sanders. The discussion emphasizes the tension between reinvesting profits and returning them to shareholders.

What is one of the main challenges faced by Goldman Sachs under CEO David Solomon?

• Increasing employee salaries

• Developing new technology

• Fixed income trading business performance

• Expansion into new markets

What scandal has raised questions about Goldman Sachs' compliance and controls?

• Libor scandal

• 1MDB scandal

• Volkswagen emissions scandal

• Enron scandal

Who was involved in the internal conflict and settlement talks at Goldman Sachs?

• A dismissed trader and Michael Duffy

• David Solomon and Lloyd Blankfein

• A compliance officer and Bernie Sanders

• A rogue employee and Jamie Dimon

What is the main argument in favor of share buybacks according to Lloyd Blankfein?

• They increase company debt

• They reduce employee wages

• They lead to more regulations

• They boost earnings per share

Why might share buybacks become a political issue?

• They are illegal in some states

• They lead to higher taxes

• They are supported by all political parties

• They are seen as a misuse of company profits