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Sexual exchange costs foreign money dealers their Goldman Sachs jobs

John Willcock,Financial Correspondent
Friday 22 April 1994 23:02 BST
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THREE highly paid foreign exchange dealers at the London offices of the top American investment bank Goldman Sachs have been forced to leave the firm after allegations of sexual harassment by a secretary.

The scandal will be especially embarrassing for Goldmans, which prides itself on its integrity and high moral tone.

The bank hit the headlines recently when it emerged that more than 100 staff in its London office would become dollar millionaires - with one senior partner rumoured to have received dollars 25m - after bonuses for a bumper year.

A secretary asked one of the dealers, who earn up to pounds 1m a year, how she could advance her career. The three traders allegedly responded with a series of crude comments. Goldmans confirmed yesterday that three foreign exchange dealers had resigned. It would, however, neither confirm nor deny details of the case, and emphasised its standing policy of not discussing staff affairs in public.

Sources close to the firm pointed out that the bank had a strong tradition of fully investigating all staff complaints and dealing with them in a strong manner. It is understood that no further action is being taken by the secretary concerned.

The scandal was the buzz of wine bars around the bank's Fleet Street offices in central London last night, but employees, themselves, were told not to talk about the affair.

Goldmans made its name as a meritocracy, relying on 12-hour days and total dedication from staff rather than the traditional City dependence on the old school tie. Getting a job is notoriously difficult. Once in, recruits are paid comparatively modestly by City standards but rewards rise rapidly if they show ability.

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