JPMorgan Chase and Goldman Sachs are the two most powerful names on Wall Street. Both score negative on almost everything. But Goldman is measurably worse.
The Comparison
| Value | JPMorgan | Goldman Sachs |
|---|---|---|
| No War, No Weapons | -30 | -30 |
| Honest & Fair Business | -20 | -20 |
| Fair Pay & Worker Respect | 0 | -10 |
| Safe & Smart Tech | -30 | 0 |
| Respect for Cultures | -10 | -10 |
| Planet-Friendly | -20 | -10 |
| Zero Waste | -30 | +25 |
| Kind to Animals | -20 | -10 |
| Fair Trade | 0 | 0 |
| Better Health | +10 | -10 |
| Average | -19 | -24 |
Goldman's Weapons Problem
Goldman's -30 on No War, No Weapons is one of the worst weapons scores for any financial institution. Goldman provides investment banking services, bond issuances, and advisory work for major defence contractors. When a weapons manufacturer raises capital, Goldman frequently underwrites the transaction.
JPMorgan scores -30 on weapons -- not because it avoids defence entirely, but because the documented evidence is less concentrated.
The Honesty Gap
Both banks score negative on Honest & Fair Business, but Goldman's -20 versus JPMorgan's -20 reflects a heavier regulatory record. Goldman paid $5 billion to settle mortgage-backed securities fraud charges. The 1MDB scandal resulted in $2.9 billion in penalties. The pattern of enforcement actions is deeper and more recent.
JPMorgan's -20 reflects its own substantial record -- the $920 million settlement for market manipulation, the Madoff-related penalties, and ongoing regulatory actions. But the weight of evidence is lighter than Goldman's.
Goldman's Fair Pay Score
Goldman at -10 on Fair Pay & Worker Respect is striking for a bank that pays million-dollar bonuses. The score reflects documented discrimination lawsuits, junior banker working condition controversies, and treatment of lower-level and contract staff. High pay at the top does not translate to fair treatment throughout the organisation.
One Goldman Bright Spot
Goldman's strongest result is 0 on Zero Waste & Sustainable Products, reflecting documented waste reduction and sustainable finance product development. JPMorgan scores -30 on the same value.
The Verdict
Neither bank has a strong profile in the current data. Both average -10 across the eleven values, though the underlying concerns differ by dimension.
Primary sources
- JPM.US: Article from www.jpmorganchase.com
- JPM.US: Article from www.jpmorganchase.com
- GS.US: TOWARDS SUSTAINABILITY DOCUMENT
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