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It is a sign of this anxiety that since then, one giant firm after another has publicly proclaimed it is putting clients first.
As the economy stumbled, Goldman's success brought harsh public criticism, as lawmakers and even some clients complained that Goldman was no longer putting clients first.
"Putting clients first is no longer a marketing slogan, it's now the law," said Secretary Perez.
That's part of the Department of Labor fiduciary standard of putting clients first and using low-cost, tax efficient funds in order to provide fee-based asset allocation to underlying investors, which has been a huge trend within the industry.
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Two banks which previously lived by that motto barely survived: Bankers Trust, which made a practice of putting clients second, was forced by regulators to merge with Deutsche Bank in 1999; and CSFB, which carried on the tradition until a regime change in 2001.Deutsche is much less than it could be.
"Merrill does truly put clients first".
The first of Goldman's 14 business principles states that the firm and its employees must put clients first.
The firm's British team received a notable "spank from Hank" — then Goldman boss Henry M. Paulson Jr. — amid an outcry it had not put clients first after its investment arm became a suitor for several publicly traded companies, including the airports operator BAA.
And Goldman's rapid growth led to more potential for conflicts of interest and not putting clients' interests first, Mr. Mandis says.
This is done through prudence, diligence, honesty, transparency, integrity, and putting clients' needs first and foremost.
Third, the S.E.C. should hold the mutual fund industry to a "fiduciary standard," one that puts clients' interests first.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com