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The alleged fraud by GS resulted in a $100M LOSS.. I dont know about you but if I'm going to take part in a fraud, it will not be to LOSE money...
you didn't mention how they did on the counterdeals.....
it is amazing that a company that was bailed out by taxpayers less than 2 years ago is in a position to pay 5.49 billion dollars in bonuses in an economic recession, with rising job losses, bankruptcies, and foreclosures.
GS has been a FABULOUS holding for me today.. Keep up the fear so I can profit more..
You must be short on it. But it is still going to be a good buy, when this issue is resolved. It's doubtful GS did anything wrong legally, it just supports the need for Wall Street reform.
in any case, goldman is going to have to pay a lot of money out to defend all the suits that they are going to be involved in now. i see that britain is going to get involved as well.
you didn't mention how they did on the counterdeals..
That is the total they lost in the counter deal.. They bought derivatives at price A, sold them at price A- $100M (for a $100M loss) because the market tanked and they couldnt sell them at par +
Quote:
Originally Posted by floridasandy
it is amazing that a company that was bailed out by taxpayers less than 2 years ago is in a position to pay 5.49 billion dollars in bonuses in an economic recession, with rising job losses, bankruptcies, and foreclosures.
that is really interesting.
It never needed bailed out to begin with. The top owner of the company is one of the richest men in america.. Dont think Buffet wouldnt have helped them out for a fee.. (his usual 10% rate).. It was easier and more profitable to borrow from the taxpayers at 0-1% interest and reinvest it to earn more. Current quarter yielded a 20% profit margin, which is 80% a year.. While they only pay 1% to the taxpayers!!
in any case, goldman is going to have to pay a lot of money out to defend all the suits that they are going to be involved in now. i see that britain is going to get involved as well.
They might just settle for say $100M without admitting guilt. It wont even hurt their bottom line and will probably be cheaper than fighting..
if you think this one case is going to be the end of it, i think you are wrong.
The Wall Street behemoth is already being investigated by a number of financial regulators around the world in addition to the US Securities and Exchange Commission’s fraud charges over derivatives mis-selling. It has now been named in a court filing seeking information about short-selling Lehman shares.
Goldman has been subpoenaed to hand over documents to Lehman’s Bryan Marsal, the man responsible for winding up the bank’s affairs and repaying creditors. Goldman was named in the court filing along with four other firms, including hedge funds SAC Capital and Citadel.
You must be short on it. But it is still going to be a good buy, when this issue is resolved. It's doubtful GS did anything wrong legally, it just supports the need for Wall Street reform.
Nope.. bought their calls yesterday which sold on this mornings bump of good earnings, then been flipping their call options for a $.25 spread * 10,000 shares (100 options). Up about $5K for a 1 day trade which I plan to pull out and buy another $22K property leased to the post office.
This was found out just in the nick of time too, its very fortunate to have arrived just when 0bama needs to make the case for taking over Wall Street and the financial sector.
i have no doubt that goldman will temporarily bounce back on the regulatory "reform" news but this isn't going to be the end of it. they actually do benefit in the new legislation proposed:
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