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The Real Question re Goldman

posted by Stephen Lubben

Why doesn't Goldman have its employees sign non-disclosure agreements?


Yes, that's the real question. Forget trying to screw your clients, why don't you make it so your employees cannot tell anyone about it. Well done Professor.

Do you have any idea if a non-disparagement clause would be enforceable in this instance, let alone actually prevent someone like Greg from publishing what he believes to be the truth? Do you know if Goldman has some similar non-disparagement clause in an employee handbook somewhere? Do you know if some whistleblower law would apply to protect the statements made by Greg notwithstanding some NDA or non-disparagement policy? Those are probably the real questions. Again, well done.

I don't see what purpose non-disparagement clauses serve when the signatory is wealthy enough to pop their assets into, say, a Manx trust. Greg Smith will never work in the industry again, but that has nothing to do with a non-disparagement clause.

A NDA might trigger a criminal hammer for trade secrets, but I doubt any court would find trade secrets in the op-ed.

I suspect GS does require NDAs, but NDAs are really only useful as sabers to rattle at the out-horsed, and GS has probably already determined there is no saber it can rattle at Smith and so is falling back on counter-spin.

In a criminal lawsuit would a an NDA still give Goldman any protection probably not. And in this case with GS do you want to stir up even more publicity!

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