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JPMorgan and Goldman Sachs Both Score -20 on Honesty. The Banking Ethics Gap.
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