Streetwise — Chapter 19: A Modern Merchant Bank

1. 1. Goldman Sachs' core strength is its culture of collaboration and putting the firm first, not individual P&L.
2. 2. Blankfein compared Goldman Sachs to a modern merchant bank, where being a banker makes you a better investor and vice versa.
3. 3. Blankfein argued that conflicts are inherent in investment banking and should be confronted, not avoided.
4. 4. Blankfein saw China as a huge opportunity for global expansion, projecting its economy would eventually exceed the US.
5. 5. Blankfein's 'Run Faster, Jump Higher' agenda aimed to grow asset management and private wealth management, which were under scale.
6. 6. Blankfein recruited key executives like David Viniar, Greg Palm, and Esta Stecher by appealing to their loyalty and need for growth.
7. 7. Blankfein described managing top talent as 're-recruiting them every day' because they are at-will employees, unlike NFL players under contract.
8. 8. Goldman Sachs prioritized its advisory franchise over principal investing, even when the latter was more lucrative.
9. 9. Blankfein described the 'dance of the eight-hundred-pound gorillas' as managing internal conflicts among aggressive, top-performing partners.
10. 10. Blankfein aimed to be appreciated rather than liked, focusing on proving valuable to partners in material ways.