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HomeThe Cost of Doing Business
Posted by Larry Doyle on July 28th, 2010 7:15 AM |
It takes money to make money.
Simple business principle, correct? A basic, fundamental business tenet, right?
Well if the money it ‘takes’ is used to pay inordinate fines and penalties resulting from management’s willingness to jeopardize reputation and principle in pursuit of profit, what does that say about the business enterprise itself?
Will the $550 million fine recently imposed on Goldman Sachs fundamentally change the manner in which Goldman engages clients and operates its business? I have chuckled more than a few times upon reading that Goldman’s mortgage employees involved in the structuring, trading, and sales of the securities at the center of this entire debacle will have to undergo continuing education type classes. These classes are truly nothing more than a ‘check the box’ perfunctory exercise. Honestly, I would love to be a fly on the wall during these classes as I am sure some of the material covered and accompanying discussions would provide real comedic fodder. (more…)
After Goldman, Who’s Next in the SEC’s Scope?
Posted by Larry Doyle on July 22nd, 2010 1:15 PM |
One would think the SEC’s settlement with Goldman Sachs was just the break we needed in the logjam to finally get some real truth and transparency into Wall Street business practices. Recall that the Goldman CDO Abacus represented a mere .2 of the total CDO market from 2006-2008.
There must be many more fish in that tank just waiting to get caught by the SEC. American taxpayers deserve nothing less than a full and total accounting and adjudication of the travesty and transgressions embedded in a number of structured transactions on Wall Street. Will we receive that accounting? Is the SEC sending a strong message to those on Wall Street that ‘there’s a new sheriff in town?’ Or is the SEC placating the American public, applying a sizable slap on the wrist to Goldman, and giving Wall Street a wink and a nod indicating that it is ‘business as usual?’ Let’s navigate. (more…)
The Only Real Question Regarding Goldman’s Settlement with the SEC
Posted by Larry Doyle on July 16th, 2010 7:34 AM |
Who’s next?
We can debate all day long whether the settlement of SEC charges against Goldman Sachs for $550 million is fair or not. While that debate will occur all over Wall Street and throughout the world of global finance today, the question regarding the size of this settlement is not important in and of itself. I am not saying that $550 million is not a lot of money. Nor am I saying that Goldman may be getting off easy. The only question I have is, “Who’s next? ”
Are we to think that the Goldman Abacus-CDO transaction is the only ABS-backed CDO that employed improper marketing? Do not be so naive. In fact, if Goldman employed improper marketing in one deal, are we to believe they did not do the same in many others? Do you ever find just one mouse? (more…)
Goldman Sachs Stonewalling Highlights Trading Mentality
Posted by Larry Doyle on June 8th, 2010 3:30 PM |
Did Goldman Sachs ‘flip the bird’ at the Financial Crisis Inquiry Commission and, in turn, America by its handling of the commission’s request for information? The fact that the FCIC felt it necessary to issue a subpoena to Goldman is an indication as to how serious the commission is handling this issue. Why would Goldman be so brazen and bold in its dealing with the commission?
Nathaniel Popper of the Los Angeles Times wrote a comprehensive article on this Goldman bombshell this morning, Goldman Sachs Stonewalling, Federal Panel Says:
Goldman Sachs Group Inc., already under fire for its actions leading up to the financial crisis, came under attack from a federal commission that accused it of refusing to divulge information, including documents detailing its controversial bets on the mortgage market. (more…)
Financial Crisis Inquiry Commission Subpoenas Goldman Sachs
Posted by Larry Doyle on June 7th, 2010 3:32 PM |
Talk is cheap!!
Lloyd Blankfein can talk all he wants about how he will implement needed changes at Goldman but Lloyd, “actions talk, bulls&*@ walks.” Why am I calling Lloyd and the Goldman crowd out once again? The Wall Street Journal highlights, Crisis Panel Subpoenas Goldman Sachs,
The bipartisan commission investigating the U.S. financial crisis said Monday it issued a subpoena to Goldman Sachs Group Inc. for failing to provide information in a timely manner. (more…)
Goldman’s Reputation Bombs in China
Posted by Larry Doyle on June 7th, 2010 2:32 PM |
I have written extensively on the impact of a lousy reputation. No firm on Wall Street is feeling the sting of a questionable reputation more than Goldman Sachs. If Goldman thought it could quarantine its lousy reputation to the Western Hemisphere, Lloyd Blankfein and team need to think again.
As the Financial Times highlights, Goldman Stung by Backlash in China,
Public criticism of Goldman Sachs has come to China, where the bank has been attacked in the state-controlled media. (more…)
Goldman’s Perfect Quarter Indicates Game is Fixed
Posted by Larry Doyle on May 10th, 2010 10:12 AM |
Those involved in fixing the scores of athletic events will intentionally lose every once in a while to give the appearance that the games themselves are on the up and up. For those betting on athletic contests, beating the point spread each and every time would be a strong indication that the games are fixed. Similarly, casinos are happy when players win so that other players will enter the game. If the house always wins, sooner or later fewer and fewer players will enter that casino.
The crowd at Goldman Sachs ,along with their cronies in Washington, may want to heed these lessons. Why do I write this? (more…)
Goldman Action Highlights FINRA Facade
Posted by Larry Doyle on May 6th, 2010 12:57 PM |
FINRA is supposed to be the Wall Street cop, right? Is the cop a real cop or more of a facade? Well, when the Wall Street banks which FINRA is charged to oversee do not observe the most basic of FINRA rules and regulations, in my opinion, FINRA is exposed as nothing more than a facade.
Evidence of this was on display just yesterday as Bloomberg highlighted in reporting, Goldman Sachs Said to Be Late to Report SEC Probe to FINRA:
Goldman Sachs Group Inc. was late in notifying the Financial Industry Regulatory Authority that trader Fabrice Tourre might be sued for fraud by the U.S. Securities and Exchange Commission, according to people familiar with the matter. (more…)
New Standards at Goldman Sachs Have Me ROFLMAO
Posted by Larry Doyle on May 3rd, 2010 3:09 PM |
Is Goldman Sachs finding religion? Is the highest profile firm on Wall Street about to publicly pronounce a measure of self-imposed penance given the recent civil charges and criminal investigation brought against it by the SEC and DOJ respectively?
A report in today’s Financial Times indicates that Goldman has entered the confessional and is ready to let the public know just how meaningful its recompense will be. (more…)
Would Goldman Sachs Defense Expose the Regulators and Legislators?
Posted by Larry Doyle on April 30th, 2010 2:17 PM |
When faced with significant threats to self-preservation, desperate people will take desperate actions. This reality is not always displayed in public, but the reality is that backroom dealings which lead to legal settlements are truly high stakes poker games.
On this note, for those interested in the markets and economy, who would not want to be a fly on the wall or a bug in the phone as dialogue and discourse flies back and forth between Goldman Sachs and officials from the Securities and Exchange Commission (SEC), Department of Justice (DOJ), Financial Industry Regulatory Authority (FINRA), Congressional subcommittees, and even the White House? (more…)
