Goldman Sachs is another Wall Street company that believes the reputational risk of their companies revolves around what the editorial pages of the New York Times and Washington Post says rather than the concerns of average American consumers. In 2018 this led them to ban investments in gun manufacturers. Reporting noted,[1]
“The firm’s policy to date forbids investment in gun manufacturers for ‘reputational reasons,’ according to a portion of a policy excerpt obtained by CNBC and confirmed by a Goldman Sachs spokesperson. (It makes exceptions for guns used by the government or similar entities.) That policy does not mention gun retailers.”
The prohibition not extending to retailers is interesting because Goldman was part of the team that helped finance the merger of Bass Pro Shops and Cabela’s.[2]
“As consumers pressure corporate America to act in the wake of last month’s mass shooting at Marjory Stoneman High School in South Florida, one of Wall Street’s highest-profile companies finds itself in an awkward position: Goldman Sachs. In 2017, Goldman’s private equity arm helped finance Bass Pro Shops’ roughly $4 billion purchase of hunting and sporting good retail rival Cabela’s. The bank contributed approximately $1.8 billion in preferred equity to the deal. It was the largest investment of the bank’s first new private equity fund since the financial crisis.”
Despite collecting significant fees putting together the merger, the David Solomon, CEO of Goldman, still took cheap shots at sporting rifles (what he likes to call “assault weapons”) one of the most popular rifles among Bass Pro / Cabela’s law-abiding customers, stating “that Goldman Sachs doesn’t work with companies that make assault weapons, bump stocks and high-capacity magazines.”
Goldman also engaged in some of the worst rhetoric of the left appearing to blame their business partners, Bass Pro/Cabelas for the murders at Marjory Stoneman Douglas High School commenting, “We are saddened by recent events, especially the tragedy in Florida last month. We are in touch with management at Bass Pro/Cabela’s and know they are deeply concerned and focused as well.”[3] Bass Pro was in no way involved in the shooting, the firearms illegally used to murder children not having been bought at Bass Pro Shops.
[1] https://www.cnbc.com/2018/03/03/goldman-sachs-investment-in-a-gun-retailer-puts-it-in-an-awkward-position.html
[2] https://www.cnbc.com/2018/03/03/goldman-sachs-investment-in-a-gun-retailer-puts-it-in-an-awkward-position.html
[3] https://www.cnbc.com/2018/03/03/goldman-sachs-investment-in-a-gun-retailer-puts-it-in-an-awkward-position.html