WEBVTT - Goldman CEO’s Year of Empty Offices 0:00:01.800 --> 0:00:04.400 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanabek. We're here every day bringing 0:00:07.280 --> 0:00:11.959 you the latest news from the world of business and finance, bus, technology, politics, economics, 0:00:12.000 --> 0:00:14.960 all harnessing the power of Business Week reporters and editors, 0:00:15.120 --> 0:00:17.960 not to mention our journalists and analyst in more than 0:00:18.000 --> 0:00:22.120 one twenty countries. You can download Bloomberg Business Week and iTunes, SoundCloud, 0:00:22.239 --> 0:00:24.239 or Bloomberg dot Com. You can also listen to our 0:00:24.320 --> 0:00:27.080 radio show at two pm Eastern Time on Bloomberg Radio, 0:00:27.240 --> 0:00:33.080 or watch us on YouTube search Bloomberg Global News. I 0:00:33.080 --> 0:00:35.199 want to get right to our next guest. Mike al 0:00:35.240 --> 0:00:38.440 Qaire is with US, president and CEO of the healthcare 0:00:38.520 --> 0:00:41.519 improvement and supply chain company. It trades on the NASDAC 0:00:41.640 --> 0:00:44.280 it's called Premier, and he is back with us on 0:00:44.400 --> 0:00:47.880 the phone from Dallas. Mike, nice to have you back 0:00:47.920 --> 0:00:50.559 with us. You guys are front and center when it 0:00:50.640 --> 0:00:53.479 comes to the healthcare and COVID supply chain. What does 0:00:53.520 --> 0:00:55.080 it look like right now? And first of all, how 0:00:55.080 --> 0:01:03.440 are you do you have? Mike? Uh No, So okay, 0:01:03.480 --> 0:01:07.679 We've got you. How are you hey? Good? Carol and Tim, 0:01:07.720 --> 0:01:10.160 thanks for having me back. So just a quick update 0:01:10.200 --> 0:01:14.679 on the vaccine distribution numbers. UM. Right now, we're doing 0:01:14.720 --> 0:01:18.759 about two point three million vaccines per day. That compares 0:01:18.840 --> 0:01:22.280 to about five forty thousand, uh the first six weeks 0:01:22.280 --> 0:01:24.440 of the pandemic, So we're catching up. I think the 0:01:24.480 --> 0:01:27.839 most important part that number is that we're on track 0:01:27.920 --> 0:01:31.840 to exceed the Biden's administration goal of hitting hundred and 0:01:31.880 --> 0:01:35.440 fifty million vaccinations in the first hundred days. That goal 0:01:35.520 --> 0:01:39.360 was a little low though, right Well, I you know, 0:01:39.400 --> 0:01:43.240 it's interesting. I think when people were thinking about when 0:01:43.240 --> 0:01:45.120 he said it, it seemed a little bit high, but 0:01:45.280 --> 0:01:49.040 and seemed aspirational. But I will tell you today, uh, 0:01:49.360 --> 0:01:52.200 we seem to be attract to surpasses. What about when 0:01:52.200 --> 0:01:54.680 it comes to Ppe? Right now, the story, if we 0:01:54.720 --> 0:01:57.120 think back to a year ago, was do not buy 0:01:57.200 --> 0:01:59.560 masks if you're a consumer, not just because you need 0:01:59.640 --> 0:02:02.960 trees are of them for healthcare professionals and there was 0:02:03.000 --> 0:02:05.800 a worldwide shortage, but also because we didn't know that 0:02:05.960 --> 0:02:07.440 this was the type of thing that was so easily 0:02:07.440 --> 0:02:12.400 transmittable through breathing. Where are we when it comes to Ppe, 0:02:12.480 --> 0:02:15.400 not just for for us but for healthcare professionals right now, 0:02:15.400 --> 0:02:18.360 what does the supply chain look like? Yeah, I just 0:02:19.080 --> 0:02:21.880 I guess the first thing we've learned with this whole 0:02:21.919 --> 0:02:24.600 issue with COVID as it relates to PE, is that 0:02:24.639 --> 0:02:28.960 we've got to diverse supply our portfolio manufacturing, just like 0:02:29.040 --> 0:02:31.519 you would hedge against risk if you've had an investment 0:02:31.520 --> 0:02:35.360 portfolio and there was such an overdependence on China and 0:02:35.400 --> 0:02:40.959 other Southeast Asian organizations or countries. Um. And I think 0:02:41.000 --> 0:02:44.919 that you know today where we are premiers taking steps 0:02:44.919 --> 0:02:47.480 along with a number of others, to try to create 0:02:47.480 --> 0:02:51.440 more resiliency in that supply chain, where we've made investments 0:02:51.440 --> 0:02:55.120 along with our healthcare systems and the domestic production of 0:02:55.160 --> 0:03:00.760 face mask, made investments in the production of isolation gown uh. 0:03:00.800 --> 0:03:04.440 And we're also doing similar stuff with exam gloves and 0:03:04.760 --> 0:03:09.320 generic drugs because we think that obviously those uh uh, 0:03:09.360 --> 0:03:13.160 these supply chains are have a lack of resiliency to them, 0:03:13.200 --> 0:03:16.120 So we want to create a bit more resiliency and 0:03:16.320 --> 0:03:20.760 obviously create more diversification the supply chains. Yeah, how easy 0:03:20.840 --> 0:03:23.239 is that to do, especially when it's you know, we've 0:03:23.280 --> 0:03:26.280 all kind of farmed everything out too in many ways, 0:03:26.320 --> 0:03:30.360 a lot of emerging markets. So it's a great question. Look, 0:03:30.440 --> 0:03:32.760 we've been talking about this for the last ten years. 0:03:33.360 --> 0:03:36.560 It's been a significant issue on our minds, um and 0:03:36.560 --> 0:03:40.800 and it's tougher now obviously to do it. But we 0:03:40.800 --> 0:03:43.840 were able very very quickly to stand up exam glove 0:03:43.960 --> 0:03:47.280 or I'm sorry, face masks and is inflation gowns. We 0:03:47.360 --> 0:03:49.080 have a partner that's going to be able to stand 0:03:49.120 --> 0:03:52.680 up exam gloves probably domestically in the next eighteen months. 0:03:54.040 --> 0:03:56.520 I'll pull you while. While it's difficult, we have to 0:03:56.560 --> 0:04:00.240 do it because, uh in, the only economy that crew 0:04:00.840 --> 0:04:04.640 was China at six point five, and the US economy 0:04:04.680 --> 0:04:08.400 shrank during the pandemic at almost four. So I think 0:04:08.440 --> 0:04:11.120 that there's been this great shift of wealth from the 0:04:11.240 --> 0:04:14.080 U s to obviously to China, and we've got to 0:04:14.080 --> 0:04:17.640 rectify that by creating a more resilient supply chain. Easier 0:04:17.640 --> 0:04:21.719 said than done, though it's absolute. The inswards have been done, 0:04:21.760 --> 0:04:23.880 but we've got to start the hard work now. And 0:04:24.040 --> 0:04:26.800 by the way, I heard a little bit of your 0:04:26.839 --> 0:04:30.760 interview at the prior folks on what the administration is 0:04:30.800 --> 0:04:33.920 doing from you know, really one of the next steps 0:04:33.960 --> 0:04:36.400 they're thinking about through taxes and those kinds of things. 0:04:36.400 --> 0:04:38.440 I think the administration has to be a lot more 0:04:38.480 --> 0:04:42.680 proactive to supporting domestic manufacturing of a lot of these 0:04:42.720 --> 0:04:46.479 critical items as well making it more more friendly to 0:04:46.520 --> 0:04:49.120 actually manufacture. Here in the stage, so Mike, safe to say, 0:04:49.200 --> 0:04:51.159 just got twenty five seconds left here, you would be 0:04:51.200 --> 0:04:55.320 opposed to increasing the corporate tax rate. You know, I'm 0:04:55.320 --> 0:04:57.240 going to stay out of the corporate tax rate. But 0:04:57.320 --> 0:04:59.560 what I what I would like to say is that 0:04:59.640 --> 0:05:03.320 we are very interested in the administration of making it 0:05:03.400 --> 0:05:09.760 more friendly for domestic bottom understood. Hey, Mike, listen, thank 0:05:09.760 --> 0:05:11.360 you so much and for going with the flow today, 0:05:11.400 --> 0:05:14.240 especially as we had to step into the President for 0:05:14.400 --> 0:05:18.280 his update on the COVID relief package. Alright, Mike, thank 0:05:18.279 --> 0:05:21.400 you so much. Mikelaer, he's president and chief executive officer 0:05:21.440 --> 0:05:24.880 at Premiere on the phone in Dallas. This is Bloomberg 0:05:24.880 --> 0:05:28.560 Business Week with Carol Masser and Bloomberg Quick Takes Tim 0:05:28.600 --> 0:05:32.159 Stinovich from Bloomberg Radio. So right now, the current issue 0:05:32.160 --> 0:05:34.960 of Bloomberg Business Week features a deep dive into equality. 0:05:35.000 --> 0:05:36.960 It's all part of our enhanced and you know, kind 0:05:37.000 --> 0:05:39.640 of a reset we're doing on our equality vertical here 0:05:39.640 --> 0:05:42.560 at Bloomberg. It also coincides with the Bloomberg Ee Quality Summit, 0:05:42.920 --> 0:05:46.240 UH this week. We've covered several of the stories in 0:05:46.240 --> 0:05:48.719 the magazine on our air in the past week or so, 0:05:48.880 --> 0:05:51.200 but one more we wanted to bring you, and this 0:05:51.320 --> 0:05:54.800 tim is about the new data that exposes precisely how 0:05:54.800 --> 0:05:58.400 white and male some US companies are. It's an interactive feature, 0:05:58.440 --> 0:06:00.040 so I highly encourage you to check it out on 0:06:00.080 --> 0:06:03.000 the website when you are done listening to us. Joel 0:06:03.000 --> 0:06:05.440 Webber is editor of Bloomberg Business Week. Jeff Green is 0:06:05.480 --> 0:06:08.880 Managing Diversity reporter at Bloomberg News. Joel, talk a little 0:06:08.880 --> 0:06:11.280 bit about the presentation of this because that is a 0:06:11.320 --> 0:06:14.240 big part of the story here. Yeah, and and to 0:06:14.279 --> 0:06:18.520 be clear, the magazine and and me, which is a 0:06:18.680 --> 0:06:22.440 very little credit for this poet. Same with we. We 0:06:22.440 --> 0:06:24.280 we tried to make the team tried to make the 0:06:24.600 --> 0:06:28.200 interactive be you know, the glory here and and we 0:06:28.200 --> 0:06:30.760 were able to take a slice of this and bring 0:06:30.760 --> 0:06:32.719 it into print because we thought it was such an 0:06:32.760 --> 0:06:36.080 important topic. Um. And that is really like the heart 0:06:36.120 --> 0:06:38.640 of this thing was to actually like look at corporate 0:06:38.640 --> 0:06:42.600 America and and it does as you would expect. It 0:06:42.640 --> 0:06:46.120 is very white. But to actually be Bloomberg and put 0:06:46.240 --> 0:06:49.400 data behind that and actually attempt to show progress was 0:06:49.440 --> 0:06:51.840 really what the this project was all about. So so 0:06:51.960 --> 0:06:54.440 Jeff talked to us about how you went about getting 0:06:54.440 --> 0:06:56.960 this data, what it revealed, and what you're starting to 0:06:57.279 --> 0:07:01.000 watch as this is an ongoing project. Yeah, I mean, 0:07:01.000 --> 0:07:03.360 I think the really really key thing here is that 0:07:03.520 --> 0:07:08.360 when we first did this last year, companies were agreeing 0:07:08.400 --> 0:07:10.880 to show us this stata, which is not required to 0:07:10.920 --> 0:07:13.320 be released publicly. In fact, the Supreme Court has made 0:07:13.360 --> 0:07:15.320 it very clear they can't be compelled to do it, 0:07:15.400 --> 0:07:17.520 so it has to be voluntary. And so in this 0:07:17.560 --> 0:07:20.720 time around we have thirty seven with another thirty promising 0:07:20.800 --> 0:07:24.360 yet this year to show so the among the SMP 0:07:24.520 --> 0:07:28.320 one hundred, the hundred largest companies in the US, a majority, 0:07:28.400 --> 0:07:30.680 a significant majority. By the end of this year, we'll 0:07:30.680 --> 0:07:33.040 be sharing this data that they have been keeping private 0:07:33.080 --> 0:07:35.880 for decades. So I mean that's almost more interesting than 0:07:35.920 --> 0:07:38.280 what it's showing, which is kind of what we know, 0:07:38.800 --> 0:07:40.680 but in a way that now makes them much more 0:07:40.680 --> 0:07:44.200 accountable to it. We'll talk about this the e O 0:07:45.160 --> 0:07:48.080 one form because that's where some of this data come from, 0:07:48.160 --> 0:07:50.840 right right, And this is very important for people to 0:07:50.960 --> 0:07:53.320 understand because there's been there were a lot of people said, 0:07:53.320 --> 0:07:54.960 why are you being such a stickler, why are you 0:07:55.000 --> 0:07:59.040 saying CEO one or nothing. Well, what happens is every 0:07:59.120 --> 0:08:01.560 year all company these with more than a hundred employees 0:08:02.280 --> 0:08:04.680 acceptoring COVID. They've been delayed, but they will be doing 0:08:04.680 --> 0:08:07.560 it again. Basically next month. I have to report the 0:08:07.800 --> 0:08:11.600 racial and gender breakdown of their workforce in detail. And 0:08:11.720 --> 0:08:14.560 there's a it's very you know, very instructive, is how 0:08:14.560 --> 0:08:17.480 to do it. So even if it's not shared publicly, 0:08:17.520 --> 0:08:20.320 there is an aggregate database of the entire workforce for 0:08:20.360 --> 0:08:23.560 the United States that that that we can see and 0:08:23.640 --> 0:08:26.240 there's no such thing, there's no other source for this 0:08:26.320 --> 0:08:29.160 kind of information. So when a company gives us their 0:08:29.320 --> 0:08:32.240 individual form, we can compare them against their industry, we 0:08:32.240 --> 0:08:34.800 can compare them against the country. We can do things 0:08:34.800 --> 0:08:36.679 that you can't do with what people just throw up 0:08:36.679 --> 0:08:39.240 on their diversity page and say this is what we're 0:08:39.240 --> 0:08:41.920 showing you. Well, I always feel like the devils and 0:08:41.920 --> 0:08:44.760 the details. The deeper you you really dive into numbers, 0:08:44.920 --> 0:08:47.920 you really get a much truer picture, and it's really cool, 0:08:48.000 --> 0:08:50.680 Like as to mention, it's interactive, so you can put 0:08:50.720 --> 0:08:54.720 in down costco, Facebook, uh and video and really get 0:08:54.760 --> 0:08:58.640 a good handle on how they're doing. Overall. Though, when 0:08:58.679 --> 0:09:01.560 we do take that big odd look Jeff, how are 0:09:01.640 --> 0:09:05.040 companies doing? What are the numbers? Well, I mean it's 0:09:05.120 --> 0:09:07.400 kind of where we know they say they are, but 0:09:07.440 --> 0:09:10.440 in a much more detailed way. And it also just 0:09:10.520 --> 0:09:13.640 kind of shows how much diversity right now is sort 0:09:13.679 --> 0:09:18.480 of focused on um Asian employees tend to be overrepresentative 0:09:18.559 --> 0:09:21.160 in terms of where they where companies shift if they're 0:09:21.200 --> 0:09:23.360 not a lot of the companies that have given us 0:09:23.440 --> 0:09:27.760 their data actually are underrepresented in terms of white workers, 0:09:27.760 --> 0:09:30.680 but where they shift to is um in Asian workers, 0:09:31.200 --> 0:09:35.920 especially tech and Hispanic and black workers. The the I 0:09:35.920 --> 0:09:38.880 guess the poor employees are not faring as well. There's 0:09:38.880 --> 0:09:42.240 a few exceptions where you have companies that are maybe 0:09:42.280 --> 0:09:44.760 in the consumer space. Um you look at McDonald's and 0:09:44.800 --> 0:09:48.319 Starbucks have managed to move some of their employees from 0:09:48.320 --> 0:09:51.320 from the workforce into the into the management ranks. But 0:09:51.480 --> 0:09:53.840 it's it's it really kind of shows especially if you 0:09:53.960 --> 0:09:55.680 if you look at it all as a big snapshot, 0:09:55.679 --> 0:09:57.679 which you can do with one of the graphics kind 0:09:57.679 --> 0:10:00.320 of where everything falls out. There's very few company that 0:10:00.360 --> 0:10:04.600 are um overrepresented or even represented in terms of black 0:10:04.640 --> 0:10:08.160 employees for example. Well, and that's interesting stuff because and 0:10:08.160 --> 0:10:09.920 it makes me kind of red between the lines here 0:10:09.960 --> 0:10:15.160 because just in in the wake of George Floyd social unrest, 0:10:15.320 --> 0:10:18.319 like it's almost like the companies, and these are the 0:10:18.360 --> 0:10:22.280 biggest companies in corporate America now recognize that they basically 0:10:22.320 --> 0:10:24.680 have to put this out in the open and actually 0:10:24.760 --> 0:10:27.720 like confront it and not try away from it. So 0:10:28.240 --> 0:10:30.640 is that what kind of tone are you have you 0:10:30.679 --> 0:10:33.200 been able to pick up on from the companies just 0:10:33.280 --> 0:10:37.200 in terms of their willingness to finally cooperate. Yeah, I 0:10:37.200 --> 0:10:40.400 think there's a very much a tone of like, you know, Okay, 0:10:40.920 --> 0:10:43.040 this doesn't look good, but it's better than being like 0:10:43.120 --> 0:10:46.319 cited is among the nose that won't share. Obviously, some 0:10:46.360 --> 0:10:48.800 companies are still willing to you know, stand by. They 0:10:48.800 --> 0:10:50.360 don't think this is a good measure. They have lots 0:10:50.360 --> 0:10:52.160 of reasons why they don't want to show this to us. 0:10:52.520 --> 0:10:54.640 But I think ultimately the you know, sort of the 0:10:55.400 --> 0:10:58.880 momentum is against them now. And companies are basically saying 0:10:58.960 --> 0:11:01.960 transparency is part of the is basically the cost of 0:11:02.080 --> 0:11:05.319 entry now to show that you're you're serious about this. 0:11:05.440 --> 0:11:08.920 Where a year or two ago, um, the focus was 0:11:08.960 --> 0:11:11.959 on gender, which is a lot easier to show because 0:11:12.000 --> 0:11:16.120 it's one measure. This is a lot more complicated and um, 0:11:16.200 --> 0:11:18.160 you know, asking people to present this in a way 0:11:18.200 --> 0:11:21.080 that you can compare to other companies is key now. 0:11:22.800 --> 0:11:24.720 Hence why we have this tool, and it's something that 0:11:24.760 --> 0:11:27.440 will continue to develop as we go forward. M Jeff, 0:11:27.520 --> 0:11:29.920 we kept you busy in the issue. I also want 0:11:29.960 --> 0:11:32.200 to talk about the back page that you also wrote, 0:11:32.960 --> 0:11:36.720 which is about the diversity officer hiring is pre It's 0:11:36.760 --> 0:11:40.520 basically like within corporate America, they know they have this problem, 0:11:40.640 --> 0:11:43.559 they're trying to address it. What what job if you're 0:11:43.600 --> 0:11:45.320 if you want to be an executive in corporate America 0:11:45.440 --> 0:11:47.520 right now, what's the best way to get that to 0:11:47.559 --> 0:11:51.400 get hired? Yeah, well, I mean there are a lot 0:11:51.440 --> 0:11:54.959 of companies hiring chief diversity officers for the first time 0:11:55.040 --> 0:11:58.600 and and also kind of refreshing what their approach to it, 0:11:58.640 --> 0:12:00.600 which is kind of part and parcel with people want 0:12:00.600 --> 0:12:02.720 to show their showing their data they're more willing to share, 0:12:02.960 --> 0:12:05.560 and they also want to show some sort of tangible 0:12:06.000 --> 0:12:07.880 evidence that they're trying to do something. I mean, the 0:12:07.960 --> 0:12:10.319 risk is that they hire a person and not with 0:12:10.400 --> 0:12:13.240 the resources behind it, and not to the results and 0:12:13.280 --> 0:12:16.000 then sort of say, see, I told you so, Um, 0:12:16.000 --> 0:12:19.040 we tried and you know, nothing changed, which is kind 0:12:19.040 --> 0:12:21.920 of where the pressure is now is to actually tie 0:12:22.000 --> 0:12:27.280 these executives and all executives to outcomes. And so you're 0:12:27.320 --> 0:12:30.320 you're seeing a lot of companies bringing their first chief 0:12:30.320 --> 0:12:33.120 diversity officer, but they were now reporting to the CEO 0:12:33.360 --> 0:12:37.120 as opposed to maybe through HR in a couple levels. Yeah, 0:12:37.120 --> 0:12:40.080 it's definitely been up to um. Listen, those are the 0:12:40.120 --> 0:12:42.480 both stories, just really really smart and full of lots 0:12:42.520 --> 0:12:45.000 of information. It's in the current issue of Bloomberg Business 0:12:45.040 --> 0:12:48.040 Week magazine. Jeff Green, thank you so much, Bloomberg News, 0:12:48.040 --> 0:12:51.360 along which Old Weber, the editor of Bloomberg Business Week magazine. 0:12:51.600 --> 0:12:55.600 This is Bloomberg Business Week with Carol Masser and Bloomberg 0:12:55.720 --> 0:12:59.520 Quick Takes Tim Stinovich from Bloomberg Radio. So we've been 0:12:59.520 --> 0:13:01.280 talking about at this this is among our most right 0:13:01.320 --> 0:13:02.920 on the Bloomberg And once we get into it. You 0:13:02.960 --> 0:13:05.200 are going to totally know why it's among the most read. 0:13:05.360 --> 0:13:08.760 It's about Goldman Sachs. It's about Goldman's modern CEO, David Solomon, 0:13:09.080 --> 0:13:13.360 and it covers everything tim from empty offices to island getaways, 0:13:13.400 --> 0:13:16.280 even with a stop in the Hampton's along the way. 0:13:17.480 --> 0:13:19.679 On is Finance reporter for Bloomberg News, joins us on 0:13:19.720 --> 0:13:21.599 the phone from New York Street. I'm so glad I 0:13:21.640 --> 0:13:23.560 get to talk to you again about this story. We 0:13:23.559 --> 0:13:27.040 spoke on quick Take earlier today. Um, look, what do 0:13:27.080 --> 0:13:30.080 you think is the juiciest detail from what you learned 0:13:30.080 --> 0:13:34.719 about Goldman Sacks over the last year. Then thanks. It's 0:13:34.760 --> 0:13:36.840 always that it's always good to talk to you, whether 0:13:36.920 --> 0:13:39.360 that's twice or more times in a day, and always 0:13:39.360 --> 0:13:42.120 they're just speak to do Carol, thank you. And I'm 0:13:42.160 --> 0:13:43.920 just being nice because I'm hoping when you get your 0:13:43.960 --> 0:13:46.960 own jet you would take us along. I will, I will, 0:13:47.080 --> 0:13:52.040 I promise. Look on gold Honestly, I think the bigger 0:13:52.080 --> 0:13:54.959 picture is what's really important here. You have a film 0:13:55.040 --> 0:13:58.320 that is doing, by all accounts, really really one of 0:13:58.360 --> 0:14:00.960 the stock is it in all time high? It's obviously 0:14:01.240 --> 0:14:04.120 Wall Street focused operation. It's one of the most premier 0:14:04.120 --> 0:14:06.960 investment banks out It is the premier investment bank out there. 0:14:07.400 --> 0:14:11.280 Great trading performance, great banking performance, in part aided by 0:14:11.320 --> 0:14:13.840 the wings fall from the pandemic that has held so 0:14:13.920 --> 0:14:18.000 many other big banks with their Wall Street operations. Then 0:14:18.000 --> 0:14:20.440 why is it that when everything is supposed to be good, 0:14:20.480 --> 0:14:23.440 there is still so much grumbling internally? And and and 0:14:23.640 --> 0:14:26.680 that's that's the question that we've tried to explore here. 0:14:26.760 --> 0:14:30.760 There's obviously some level of frustration with the CEO leadership style. 0:14:30.880 --> 0:14:34.400 You've seen senior level defections, and at a time when 0:14:34.440 --> 0:14:40.640 there are numerous lucrative opportunities for successful golden executives outside 0:14:40.720 --> 0:14:42.840 of the banking space, and many of them seem to 0:14:42.840 --> 0:14:46.320 be taking up on that opportunity. And there's without a 0:14:46.440 --> 0:14:50.080 doubt the underlying theme of and it's something that affects 0:14:50.080 --> 0:14:53.880 government but also every other large bank. As we think 0:14:53.920 --> 0:14:56.960 about a wind down to the pandemic, hopeful wind down 0:14:57.000 --> 0:14:59.640 to the pandemic, we're also trying to figure out what 0:14:59.760 --> 0:15:03.760 the you normal will look like. How much flexibility will 0:15:03.800 --> 0:15:07.880 bank provide And that's a key question because that will 0:15:07.920 --> 0:15:10.120 play a big role in the kind of talent you 0:15:10.160 --> 0:15:12.920 can attract so every company has to wrestle with it, 0:15:13.200 --> 0:15:15.840 and that has also been a source of tension inside 0:15:15.840 --> 0:15:20.120 Goldman Sex because of what appears to be a hardline 0:15:20.160 --> 0:15:23.840 stance of the CEO David's owner. So, okay, so many 0:15:23.840 --> 0:15:25.960 different places we could go, but first of all, I 0:15:26.080 --> 0:15:29.760 kind of, you know, put a note to myself, let's 0:15:29.760 --> 0:15:33.640 just start with the jet, because is that normal? I 0:15:33.680 --> 0:15:37.440 feel like sure, if you go pre financial crisis, a 0:15:37.440 --> 0:15:40.080 lot of corporations had their own private jet. It was 0:15:40.120 --> 0:15:43.440 the norm. I don't think we would fingerpoint or anything. 0:15:43.440 --> 0:15:46.760 It was just the way CEO has got around is 0:15:46.800 --> 0:15:49.200 that the case for Wall Street? Was it that way? 0:15:49.280 --> 0:15:51.120 And has it not been that way? And so it's 0:15:51.200 --> 0:15:54.880 kind of a bit of an anomaly for Goldman. I 0:15:54.880 --> 0:15:58.400 think it's an extremely fair point to make. Carol jets 0:15:58.520 --> 0:16:02.200 by themselves are not normally on on Wall Street. An 0:16:02.200 --> 0:16:05.040 executive jet might be seen as normal in fact, but 0:16:05.240 --> 0:16:08.800 Goldman fact long may day point of not buying one, 0:16:08.880 --> 0:16:11.600 not having its own private jet, because it was one 0:16:11.640 --> 0:16:14.800 of the extravagance. But invite our public schand and even 0:16:14.880 --> 0:16:17.320 those who have it, it would be hard to certifind 0:16:17.360 --> 0:16:21.680 cases where they've used it. Extensively for personal trips, and 0:16:22.160 --> 0:16:24.920 Goldman's only had jets for a few months now, and 0:16:25.480 --> 0:16:27.000 from what we have been able to see in the 0:16:27.000 --> 0:16:29.560 record we've seen, it seems half of those trips have 0:16:29.640 --> 0:16:32.680 been these we can getaways. But then you also have 0:16:32.800 --> 0:16:36.160 to juxtapose that with what is happening in the broader 0:16:36.200 --> 0:16:40.480 world right now. You have a firm whose CEO has 0:16:40.600 --> 0:16:44.320 access to the corporate asset to be able to escape 0:16:44.440 --> 0:16:47.640 to these getaways, while at the same time his subordinate 0:16:47.920 --> 0:16:50.680 and the public at large are still dealing with the 0:16:50.720 --> 0:16:55.000 rigors of pandemic life. That brings a whole level of strain. 0:16:55.200 --> 0:16:58.480 And when you know that your boss has access to 0:16:58.680 --> 0:17:01.640 these getaway and at the same time want to back 0:17:01.680 --> 0:17:03.640 in the city, want you back at the desk, because 0:17:03.680 --> 0:17:06.639 he believed that is what will keep innovation going, and 0:17:06.680 --> 0:17:09.280 that is what will make sure that the film continues 0:17:09.320 --> 0:17:12.239 to strive. There is obviously a bit of a right 0:17:12.760 --> 0:17:15.840 a level of fiction, and that messaging mismatch has to 0:17:15.840 --> 0:17:18.720 be address. Listen that tension you get into so well 0:17:18.760 --> 0:17:20.719 in this story, we can't go through it all and 0:17:20.760 --> 0:17:22.520 it is really a must read. As we said, it 0:17:22.600 --> 0:17:25.119 is among our most read on the Bloomberg. So I'll 0:17:25.160 --> 0:17:27.280 put it out on Twitter and highly recommend everybody go 0:17:27.359 --> 0:17:29.480 to Bloomberg dot com and check it out. Tree, thank 0:17:29.520 --> 0:17:32.320 you so much. Tree. Not Jon finance reporter at Bloomberg 0:17:32.400 --> 0:17:34.520 News joining us on the phone from New York City. 0:17:34.560 --> 0:17:36.600 And that's really that important point that he said, come on, 0:17:36.640 --> 0:17:39.439 I want people back at work, and yet he has 0:17:39.480 --> 0:17:42.160 the luxury to kind of jet off to different places. Yeah, 0:17:42.160 --> 0:17:44.360 that's a great point. I want people back at work too. Yeah. 0:17:44.400 --> 0:17:47.320 I know. Well they're slowly coming back, slowly, slowly. This 0:17:47.600 --> 0:17:51.679 is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes. 0:17:51.720 --> 0:17:56.280 Tim Stinovic from Bloomberg Radio. Let's get into our next guest, 0:17:56.359 --> 0:18:00.400 because listen, we keep a watch on bitcoin every day. 0:18:00.440 --> 0:18:03.280 Did drop back a little bit today after scaling a 0:18:03.280 --> 0:18:06.760 fresh record on bets at some of the pandemic relief 0:18:06.760 --> 0:18:09.520 payments in the US will end up chasing the digital 0:18:09.520 --> 0:18:13.440 tokens towering rally. We've been writing about that, uh and 0:18:13.760 --> 0:18:18.000 also writing about bitcoin. In his weekly column, he tackles 0:18:18.040 --> 0:18:21.840 maybe how central banks get into the cryptocurrencies. Let's bring 0:18:21.880 --> 0:18:24.800 in Bloomberg New Economy editorial director Andy Brown. He's with 0:18:24.880 --> 0:18:27.680 us on the phone in New York City, Andy, good 0:18:27.720 --> 0:18:29.880 to have you here with us. I feel like bitcoin 0:18:30.000 --> 0:18:31.840 is one of those things as we continue to watch 0:18:31.880 --> 0:18:34.320 it take out level after level, there's either people who 0:18:34.320 --> 0:18:37.080 are all in on it are people who don't like 0:18:37.160 --> 0:18:41.080 it at all. Yeah. Well, you know, just looking into 0:18:41.119 --> 0:18:45.800 the whole issue of cryptocurrencies, in bitcoin, it strikes you 0:18:45.920 --> 0:18:51.200 how how shockingly retrograde this whole thing is, right, I mean, 0:18:51.600 --> 0:18:54.080 you know, you start, you start with the environment. I 0:18:54.119 --> 0:18:56.480 know this is is a terribly unpopular thing to say 0:18:56.560 --> 0:18:59.040 with bitcoin Enthusually, I have to will argue against it. 0:18:59.640 --> 0:19:02.760 The true to the matter is that bitcoin in producing 0:19:02.800 --> 0:19:07.320 bitcoin requires massive amounts of computing power and according to 0:19:07.400 --> 0:19:10.480 the analysts, analysts that the researchers at Cambridge University equal 0:19:10.760 --> 0:19:14.720 it equals the carbon emissions equal to the equal to 0:19:14.760 --> 0:19:18.000 the entire output of Argentina. Okay, so it's terrible for 0:19:18.080 --> 0:19:21.600 the terrible for the environment. In terms of a medium 0:19:21.640 --> 0:19:25.760 of exchange, it's really super inefficient. Now there are layers 0:19:25.800 --> 0:19:28.440 that are being built on top of the of bitcoin, 0:19:28.520 --> 0:19:30.720 but right now you can do about four or five 0:19:30.800 --> 0:19:34.639 or six transactions every second versus literally thousands that are 0:19:34.680 --> 0:19:37.560 done by visa and master cards, so it's clunky. Janet 0:19:37.600 --> 0:19:42.080 Yellen was just the other days saying this is extremely inefficient. 0:19:42.119 --> 0:19:43.719 And then as a store of value, I mean this 0:19:43.760 --> 0:19:45.640 time last year it was trading at something like less 0:19:45.640 --> 0:19:48.120 than ten thousand. Now it's it's up as as as 0:19:48.160 --> 0:19:51.359 you as you say, now hitting hitting new new records. 0:19:51.400 --> 0:19:55.320 So you know, in terms of what it is, uh. 0:19:55.480 --> 0:19:58.480 And of course nobody actually actually knows what what what 0:19:58.480 --> 0:20:02.840 what value it represent beyond scarcity, right, so basically as 0:20:02.840 --> 0:20:06.320 a string a string of software code. Uh. And and 0:20:06.359 --> 0:20:09.240 there's this artificial scarce because only twenty one million bitcoin 0:20:09.560 --> 0:20:14.600 will ever be produced or mind as as as they say, uh, 0:20:14.640 --> 0:20:17.800 and yet it actually does represent right now, there's there's 0:20:18.119 --> 0:20:22.840 a very fundamental threat uh to central banks um. And 0:20:22.920 --> 0:20:26.439 central banks are really scrambling to come up with a 0:20:26.520 --> 0:20:30.320 response to this thing. Um. And it does seem as 0:20:30.320 --> 0:20:33.479 though China is at the forefront of the response to 0:20:33.480 --> 0:20:37.560 this challenge by coming up with a central bank issued 0:20:38.119 --> 0:20:41.879 digital currency. And again, you know, this is something that 0:20:41.920 --> 0:20:44.680 banks are now looking at. They didn't want any part 0:20:44.720 --> 0:20:48.080 of cryptocurrencies, but they're being forced to respond. Janet Yell 0:20:48.119 --> 0:20:51.040 and the other day said, well, yeah, actually you know, uh, 0:20:51.600 --> 0:20:53.920 maybe a digital dollar would be a good idea. Maybe 0:20:53.920 --> 0:20:57.280 it would facilitate payments and so on. Um, you know, 0:20:57.359 --> 0:20:59.639 and and and kind of the thought is that the 0:21:00.240 --> 0:21:04.560 irony here is that you know, the the the people 0:21:04.560 --> 0:21:08.639 who invented bitcoin. This this was very much a libertarian experiment, 0:21:08.680 --> 0:21:11.480 a radical experiment and peer to peer money. You you 0:21:11.480 --> 0:21:14.439 you took out the middle person, right that the banks, 0:21:14.840 --> 0:21:20.200 the monetary authorities. What would you know the unintended consequences 0:21:20.240 --> 0:21:23.159 of this, Maybe that they have that they're going to 0:21:23.280 --> 0:21:28.000