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HomeBREAKING NEWS: Goldman Spread Risk? That’s Very Old News!
Posted by Larry Doyle on April 26th, 2010 8:43 PM |
Breaking News!!!
The Washington Post just broke a news story, Senate Panel Finds Goldman Spread Risk Through Financial System, highlighting the fact that a Senate investigation has determined that Goldman Sachs actually ‘spread’ risk via its distribution and dissemination of structured transactions. Really? And this is supposed to be news? (more…)
What Else Was Happening at Goldman Sachs?
Posted by Larry Doyle on April 23rd, 2010 9:08 AM |
Living life on the edge may be exhilarating and at times highly profitable, but in the process the risks can be enormous and the impact longstanding. So is the world of Goldman Sachs circa 2010.
Goldman’s pursuit of a highly proprietary business model since the late 1990s has now placed the firm squarely in the crosshairs as the master villain on Wall Street. The executives at Goldman may deem this view to be unfair, but they have nobody but themselves to blame. This blame goes far beyond current Goldman chief Lloyd Blankfein. The blame can be directed at former chiefs Jon Corzine and Hank Paulson, as well. (more…)
Goldman’s Animal House
Posted by Larry Doyle on April 21st, 2010 8:41 AM |
Trust. Would you know it if you saw it? Would you be able to distinguish real trust from the appearance of trust? Whom can you trust?
Wall Street is an industry in which trust is too often promoted, but too seldom practiced. When somebody would say to me “Trust me on this,” I would get increasingly concerned. Why? Real trust is a virtue which goes without saying.
On this note, Wall Street’s favorite punching bag Goldman Sachs is dealing with the most egregious violation of fiduciary responsibility: a violation of trust. Even if Goldman is cleared of the fraud charges brought by the SEC, Goldman is already guilty of a greater charge, that is, a violation of trust in being fully forthcoming in its disclosures. (more…)
Will Fabrice Tourre be Paul Mozer and Lloyd Blankfein be John Gutfreund?
Posted by Larry Doyle on April 19th, 2010 1:29 PM |
While some may view Friday’s charges by the SEC as a mere flesh wound against the all powerful Wall Street titan Goldman Sachs, I think this situation has the potential to mushroom far beyond that.
I am sure that Goldman Sachs is currently running full throttle in terms of damage control. In fact, given that Goldman was served with a Wells Notice many months ago, there is no doubt in my mind that Goldman has been ‘circling the wagons’ in regard to its legal exposures. That said, Goldman can not fully nor properly prepare for public backlash and investor outrage. As much as Goldman can do to disparage the SEC’s case, the fact is the much bigger case against Goldman will be held in the court of public opinion. (more…)
Why I Think Goldman Is Guilty
Posted by Larry Doyle on April 19th, 2010 9:30 AM |
Information is everything.
Regular readers of Sense on Cents know how often I have raised that point as being perhaps the most important factor on Wall Street. Information, timely access to information, and the reliability of that information all move markets. Who gets the information, how it is processed and shared, and how it is disclosed all play a very important factor in determining winners and losers on Wall Street.
Against this backdrop, why do I think Goldman Sachs will ultimately be found guilty of the fraud charges brought against it on Friday? Based on discussions I have had with Wall Street colleagues, Goldman Sachs utilized a law firm in this specific Abacus transaction which did not mandate full and proper disclosure. As such, I believe the law firm itself will also face potential charges for aiding and abetting a fraud. (more…)
A Wall Street Insider’s Views on Goldman Sachs
Posted by Larry Doyle on April 16th, 2010 1:45 PM |
Given the extraordinary interest in the SEC charging Goldman Sachs with fraud, I am compelled to provide a compilation of my writing on Goldman going back over the last year. Although many may view Goldman as one massive conspiracy, I have never been one to paint an entire organization (or industry) with a broad brush. That said, I have been aggressive in questioning Goldman’s comfort level in jeopardizing its reputation in pursuit of profit. I said as much in a public interview on CNBC last month.
Goldman’s close, if not incestuous, relationships with Washington, many hedge funds, and major clients has positioned the firm as the centerpiece of America’s outrage toward Wall Street. To that end, for those interested in my views of Goldman Sachs, I am happy to provide the following links from the Sense on Cents archives: (more…)
Doing Biz with Goldman Sachs = ‘Swimming with the Sharks’
Posted by Larry Doyle on April 16th, 2010 12:03 PM |
Given the breaking news of Goldman Sachs being charged with fraud, I am bumping up this story from my original posting on April 14th.
If you are swimming with sharks, you had better be careful.
I have had an extraordinary number of people visit Sense on Cents as a result of searching for information on how Goldman Sachs operates. Although many believe Goldman’s operations to be one massive conspiracy, I would not blindly and wantonly generalize about an entire organization. By the same token, Goldman is certainly not a pack of choir boys either. (more…)
SEC Charges Goldman Sachs with Fraud
Posted by Larry Doyle on April 16th, 2010 11:21 AM |
The Washington Post just reports, SEC Accuses Goldman Sachs of Civil Fraud:
The Securities and Exchange Commission announced Friday civil fraud charges against Goldman Sachs and one of its vice presidents. The agency alleges that the company marketed complex subprime mortgage securities and failed to disclose to investors that a major hedge fund had bet against the securities.
Goldman Sachs shares fell 7.4 percent.
Goldman was down 7.4% and is now down 14%!! This opens an enormous can of worms for the entire industry.
What other dealers engaged in similar activities? Hedge fund manager John Paulson who made billions in shorting the sub-prime market is being tied to this investigation. If Paulson aided and abetted a fraud, then he deserves to pay in spades. Sense on Cents will be monitoring closely. If it is deemed that Goldman did commit fraud, all people involved are supposed to pay with more than just fines.
Let’s go back to March 2, 2010 when I appeared on CNBC’s Street Signs and warned of Goldman’s greatest risk (at the 3-minute mark of the video):
LD
Questions from Sense on Cents for Goldman Sachs
Posted by Larry Doyle on April 27th, 2010 8:55 AM |
Goldman Sachs’ executives, including CEO Lloyd Blankfein and structured finance VP Fabrice Tourre, will come front and center in Washington today to supposedly face the music and address what truly was going on within the mortgage operations of Goldman Sachs.
Will the music which Lloyd and team face be merely of the background variety? Will today’s hearing be nothing more than another sideshow to the ongoing three ring circus in Washington pretending to serve as real investigations? What has America truly learned throughout the ongoing Congressional investigations into our financial and economic crisis that we did not already know eighteen months ago?
The American public has been largely served a dish of stale bread and chopped meat with little substance or sizzle. Will today be different? I am not optimistic. Why? (more…)
Tags: Dan Sparks Congressional questioning April 27 2010, Fabrice Tourre faces questioning April 27 2010, Financial Times Goldman Criticised $1B Loan Product, Goldman Sachs faces Congress April 27 2010, Goldman Sachs questioning April 27 2010, Lloyd Blankfein faces questioning April 27 2010, Matthew Bieber Goldman CDO trader on Timberwolf transaction, Senate subcommittee questioning of Goldman Sachs April 27 2010, Tom Montag comment on Timberwolf CDO April 27 2010
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