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Op-ed Blasting of Goldman Sachs Offers Ammunition to Advocates of Regulation

A recent Goldman Sachs executive criticized the shady nature of Wall Street fi

A recent repudiation of financial services giant Goldman Sachs in an op-ed column for The New York Times has rippled throughout Wall Street and provided fodder for advocates of greater regulation in the industry.

Senators Carl Levin of Michigan and Jeff Merkley of Oregon have already

A recent repudiation of financial services giant Goldman Sachs in an op-ed column for The New York Times has rippled throughout Wall Street and provided fodder for advocates of greater regulation in the industry.

Senators Carl Levin of Michigan and Jeff Merkley of Oregon have already pounced on the article, which derides Goldman as being "toxic and destructive," calling for a backing of an amendment to the Dodd-Frank Wall Street Reform Act of 2010. The so-called Volcker Act would ban on proprietary trading and conflicts of interest.

"[Congress cannot] legislate the culture but I think the heart of this goes to why we needed the … amendment," Merkley, a member of the Senate Banking Committee, told Bloomberg.

Greg Smith - the former Goldman head of equity derivatives in Europe, the Middle East and Africa who wrote the op-ed - criticized the company's shady business practices, lack of culture and mishandling by CEO Lloyd Blankfein and president Gary Cohn, Fox Business reports.

But the biggest bombshell was Smith's accusation that Goldman does not care for its clients, claiming a tendency among employees to refer to them as "muppets."