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RE: US Bankers control USA - 8/10/2009 10:15:53 PM
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GroupW
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GS really never was in danger. Like BB&T, they did notneed nor want the money. They were essentially forced to take it in order to avoid even the appearance that the govt might think there would be any weak link in the monetary system.
In reality, GS had the best risk mgmt practices in the industry and successfully avoided the mess. No wonder Paulson would want to talk with Blankfein.
I'm familiar with several of the desks at GS, Lehman nka Barclays, Bear and others. GS never took the risks that the others did.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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RE: US Bankers control USA - 9/8/2009 8:27:46 PM
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prophet
Posts: 689
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Missing Lehman Lesson of Shakeout Means Too Big Banks May Fail
By Bob Ivry, Christine Harper and Mark Pittman
Sept. 8 (Bloomberg) -- The warning was ominous: “Massive global wealth destruction.”
That’s what Lehman Brothers Holdings Inc. executives predicted before they filed the biggest bankruptcy in U.S. history. “Impacts all financial institutions,” read one bullet point in a confidential memo prepared for government officials obtained by Bloomberg News. “Retail investors/retirees assets are devastated.”
The message didn’t get through. Two dozen of the world’s most powerful bankers, brought together by Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Bank of New York President Timothy F. Geithner the weekend of Sept. 13, 2008, to devise a rescue plan for Lehman, were too busy saving themselves to see the larger threat.
“The discussion among the CEOs was ‘How do we prevent the next firm from going under?’” former Merrill Lynch & Co. Chief Executive Officer John A. Thain, who cut a deal to sell his company that weekend, said in an interview. “There should have been much more discussion about the impact directly on the markets if Lehman went bankrupt.”
More here........ http://www.bloomberg.com/apps/news?pid=20601170&sid=aX8D5utKFuGA
quote:
One year later, policymakers haven’t learned the lesson of the bankruptcy, said Richard Bernstein, CEO of Richard Bernstein Capital Management LLC in New York and former chief investment strategist for Merrill Lynch.
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Create in me a Clean Heart, O Lord.
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RE: US Bankers control USA - 9/9/2009 8:18:27 PM
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prophet
Posts: 689
Joined: 4/19/2005
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Now He says
(whatta Hypocrite!  )
Goldman boss says anger over pay justified
Demonstrators protest outside the Goldman Sachs building in New York. — Reuters pic
FRANKFURT, Sept 10 — The head of US bank Goldman Sachs said yesterday that anger over bankers’ pay was “understandable and appropriate,” and that greater scrutiny of trade in complex instruments was needed to keep banks in check.
But with the banking sector bouncing back from the financial crisis, regulatory overkill could choke off economic growth, Lloyd Blankfein told an industry conference in Germany’s financial hub.
“I think several months ago took the worst case off the table, and I think the financial markets are in recovery now. So I believe that the worst of this crisis is off the table,” he said.
He took a hard line on bankers’ compensation, arguing there was scant justification for paying outsized bonuses when a bank had lost money for the year.
Anger over compensation was in many respects “understandable and appropriate,” he said, adding that Goldman had a clawback tool which let the firm recover some of the bonuses paid if reputational or financial damage ensued.
“Multi-year guaranteed employment contracts should be banned entirely. The use of these contracts unfortunately is a common practice in our industry,” he said.
Bankers’ pay has been a hot topic at the two-day Banks in Transition annual conference, especially as some finance ministers from the Group of 20 countries want to explore ways to rein in bonuses.
Martin Blessing, the head of Commerzbank, said it was time to end guaranteed bonuses for investment bankers, fuelling debate on what role payoffs play in destabilising the financial system.
“I have a feeling that in New York and London guaranteed bonuses are being paid again if people are changing jobs,” said Blessing, who last year was the lowest-paid chief executive for a German blue-chip company.
“And therefore I agree with (HSBC Chairman) Stephen Green, who said yesterday that bonus payments there should be abolished. I think this is correct,” said Blessing, who faces a lawsuit from dozens of London bankers who say they did not get promised bonuses after Commerzbank bought Dresdner Kleinwort last year.
Banks are feeling the heat as regulators, central banks and national governments try to ensure free-wheeling banks do not again pose systemic risks to the financial system.
Central bankers on Sunday proposed a new regulatory framework that would force banks to set aside more profits as a cushion against hard times.
While Goldman’s Blankfein acknowledged the financial system needed repair as policymakers tried to restore trust, he said they should not try to shelter the sector from the storm of the century and should focus on making trade in derivatives more open to scrutiny.
“This will do more to enhance price discovery and reduce systemic risk than perhaps any specific rule or regulation,” he said. — Reuters
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Create in me a Clean Heart, O Lord.
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RE: US Bankers control USA - 9/13/2009 8:19:07 PM
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prophet
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Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman
By Mark Deen and David Tweed
Sept. 13 (Bloomberg) -- Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.
“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”
Stiglitz’s views echo those of former Federal Reserve Chairman Paul Volcker, who has advised President Barack Obama’s administration to curtail the size of banks, and Bank of Israel Governor Stanley Fischer, who suggested last month that governments may want to discourage financial institutions from growing “excessively.”
A year after the demise of Lehman forced the Treasury Department to spend billions to shore up the financial system, Bank of America Corp.’s assets have grown and Citigroup Inc. remains intact. In the U.K., Lloyds Banking Group Plc, 43 percent owned by the government, has taken over the activities of HBOS Plc, and in France BNP Paribas SA now owns the Belgian and Luxembourg banking assets of insurer Fortis.
While Obama wants to name some banks as “systemically important” and subject them to stricter oversight, his plan wouldn’t force them to shrink or simplify their structure.
Stiglitz said the U.S. government is wary of challenging the financial industry because it is politically difficult, and that he hopes the Group of 20 leaders will cajole the U.S. into tougher action.
G-20 Steps
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYdgQkXu9eBg
_____________________________
Create in me a Clean Heart, O Lord.
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RE: US Bankers control USA - 10/26/2009 8:57:13 PM
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prophet
Posts: 689
Joined: 4/19/2005
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quote:
ORIGINAL: GroupW
GS really never was in danger. Like BB&T, they did notneed nor want the money. They were essentially forced to take it in order to avoid even the appearance that the govt might think there would be any weak link in the monetary system.
In reality, GS had the best risk mgmt practices in the industry and successfully avoided the mess. No wonder Paulson would want to talk with Blankfein.
I'm familiar with several of the desks at GS, Lehman nka Barclays, Bear and others. GS never took the risks that the others did.
Capmark files for Chapter 11 bankruptcy protection
Capmark became one of the biggest victims of the downturn of the commercial property market in the recession as it filed for Chapter 11 bankruptcy protection in the US.
By James Quinn
Published: 7:58PM GMT 26 Oct 2009
Capmark, which was owned by a consortium of investors including KKR and Goldman Sachs' principal investments arm, collapsed under the weight of $21bn (£12.8bn) of debt and $20.1bn of assets.
Bankruptcy filings in Wilmington, Delaware, show that Capmark, one of the largest lenders to the US commercial property sector, serviced more than $360bn of debt.
The company struggled as the commercial property sector began to deteriorate, with tenants shutting up shop as a result of the downturn in the economy, leading to increasing default rates on loans.
Capmark owes $7.1bn to its 30 largest creditors, including $4.6bn to Citibank as administrative agent for a $5.5bn credit agreement the company had in place; and $1.84bn to Deutsche Bank as trutsee for a number of loan notes.
However the lawyers handling the Chapter 11 filing are confident of finding buyers for the business. "All the businesses will be saved and continue with Capmark or will be sold as going concerns for full value," said lawyer Martin Bienenstock of Dewey & LeBoeuf.
_____________________________
Create in me a Clean Heart, O Lord.
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RE: US Bankers control USA - 10/27/2009 1:46:17 PM
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GroupW
Posts: 2526
Joined: 11/16/2007
From: Up in the hills of Colorado (very BIG hills...)
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Not sure I get your point here. GS made a bad investment - that's been known for quite a number of months now. Capmark's bankruptcy has been contemplated since very early this year. This shouldn't impact GS's financial position all that much.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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RE: US Bankers control USA - 11/6/2009 7:18:46 PM
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prophet
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Wall Street, Goldman make America sick
Commentary: Vaccine flap adds fuel to public outrage
NEW YORK (MarketWatch) -- Some big Wall Street banks are girding against the swine flu, but a flap over how the firms got the vaccine will make them miserable.
The public is outraged about reports that Citi /quotes/comstock/13*!c/quotes/nls/c (C 4.07, +0.01, +0.25%) , Goldman Sachs Group Inc. /quotes/comstock/13*!gs/quotes/nls/gs (GS 172.00, +0.22, +0.13%) and Morgan Stanley /quotes/comstock/13*!ms/quotes/nls/ms (MS 32.59, -0.01, -0.03%) along with other big New York employers, received hundreds, even thousands, of H1N1 vaccine doses before hospitals and other healthcare providers, many of which have run out of the precious drug. See full story.
Reuters
A spokeswoman for New York City's Department of Health said firms like Goldman are important outlets for reaching at-risk adults.
Clearly someone from the health department should visit a hospital or doctor's office. They might discover that those are also excellent places to reach sick people or those at-risk.
For Goldman Sachs, accused of unfairly benefiting from government bailout funds and its close relationships with administration officials, the problem is especially acute. Though the company said it only had 200 of the 5,400 doses it ordered, it had no plans to give the vaccine back to the government, unlike Morgan Stanley, which received 1,000 doses and is sending them to New York hospitals that need the drug.
http://www.marketwatch.com/story/goldman-gets-vaccine-public-is-sick-over-it-2009-11-06
_____________________________
Create in me a Clean Heart, O Lord.
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RE: US Bankers control USA - 11/7/2009 11:35:38 AM
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GroupW
Posts: 2526
Joined: 11/16/2007
From: Up in the hills of Colorado (very BIG hills...)
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I still don't get your point when you post this stuff. GMAC used to provide flu vaccines as well. Lots of companies do that.
Does it matter if an at-risk adult gets the vaccine at work or drives to a hospital? Same outcome either way.
Make your point.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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RE: US Bankers control USA - 11/9/2009 6:47:47 PM
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prophet
Posts: 689
Joined: 4/19/2005
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quote:
ORIGINAL: GroupW
I still don't get your point when you post this stuff. GMAC used to provide flu vaccines as well. Lots of companies do that.
Does it matter if an at-risk adult gets the vaccine at work or drives to a hospital? Same outcome either way.
Make your point.
Point is why do bankers get the vaccines first, instead of the clinics?
It does mattere. A bank aint a clinic. A beggar cant get vaccinated at the bank.... clear nough?
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Create in me a Clean Heart, O Lord.
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RE: US Bankers control USA - 11/9/2009 6:49:51 PM
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prophet
Posts: 689
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Delusional or what?
---------------------------------------------------------------------------------
Goldman Sachs boss Lloyd Blankfein says banks do 'God's work'
From correspondents in London
Reuters
November 09, 2009 08:11am
Text size
+ - Print Email Share Add to MySpace Add to Digg Add to del.icio.us Add to Fark Post to Facebook Add to Kwoff What are these? Goldman Sachs' Lloyd Blankfein testifies before a committee in Washington earlier in the year / Reuters
Banks under fire since financial crisis began
Goldman boss says banks do "God's work"
Says pay is justified by performance
THE chief executive of Goldman Sachs, which has attracted widespread media attention over the size of its staff bonuses, believes banks serve a social purpose and are doing "God's work."
In an interview with London's Sunday Times newspaper, Lloyd Blankfein also said he believed big profits and bonuses at banks were a sign that the world economy was recovering.
"We help companies to grow by helping them to raise capital," he told the paper.
"Companies that grow create wealth.
"This, in turn, allows people to have jobs that create more growth and more wealth.
"We have a social purpose."
He is, he told the paper, just a banker "doing God’s work"
The dominant Wall Street bank posted third-quarter earnings of US$3 billion ($3.25 billion) and plans to hand out more than US$20 billion in year-end bonuses.
http://www.news.com.au/business/story/0,27753,26323561-462,00.html?from=mostpop
_____________________________
Create in me a Clean Heart, O Lord.
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RE: US Bankers control USA - 11/9/2009 7:13:47 PM
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GroupW
Posts: 2526
Joined: 11/16/2007
From: Up in the hills of Colorado (very BIG hills...)
Status: offline
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If by delusional you mean the claim that GS is doing God's work, we agree. That was a fairly stupid comment from a smart, smart guy.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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RE: US Bankers control USA - 11/18/2009 8:36:14 PM
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prophet
Posts: 689
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Goldman was exposed to AIG losses: government report
NEW YORK (Reuters) - Goldman Sachs Group Inc could have suffered dramatic losses if the federal government had not intervened to prop up American International Group Inc, according to a government report.
The report by the special inspector general for the government bailout program raises doubts about Goldman's previous claims that it was hedged against potential AIG losses.
Last fall, as the financial services industry stood on the brink of collapse, the government stepped in with an unprecedented effort to rescue the system. AIG was among the companies that received billions of dollars from the U.S. Treasury's Troubled Asset Relief Program.
If AIG had collapsed, it would have made it difficult for Goldman to liquidate its trading positions with AIG, even at discounts, the report said. It also would have put pressure on other counterparties that "might have made it difficult for Goldman Sachs to collect on the credit protection it had purchased against an AIG default."
Finally, the report said, an AIG default would have forced Goldman Sachs to bear the risk of declines in the value of billions of dollars in collateralized debt obligations.
A Goldman spokesman called the risks discussed in the report a "moot point."
"Goldman Sachs has consistently said its exposure with AIG was collateralized and hedged and therefore we had no direct credit exposure," Goldman Spokesman Michael DuVally said. "Given the hedges, collateral, and government backing as a result of the bailout, the additional risks of declining market values in the event of an AIG default are a moot point."
AIG has received pledges of up to $180 billion in taxpayer aid since last fall to help save it from collapse. It was revealed in March that Goldman received $12.9 billion in payments and collateral from AIG.
David Viniar, Goldman's chief financial officer, in March told reporters that the Wall Street bank did nothing wrong when it accepted payments to close out trades with AIG.
http://www.reuters.com/article/businessNews/idUSTRE5AH3XV20091118
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Create in me a Clean Heart, O Lord.
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RE: US Bankers control USA - 11/18/2009 8:38:53 PM
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prophet
Posts: 689
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Shut up, Lloyd Blankfein!
The Goldman Sachs CEO is trying to portray the Wall Street titan as a paragon of virtue. But Blankfein should stop pretending that the bank is a charity.
NEW YORK (CNNMoney.com) -- The public relations gurus who are advising Goldman Sachs Chief Executive Officer Lloyd Blankfein might want to give him some new advice. Shut up!
Blankfein made a startling confession Tuesday. He apologized for Goldman's role in the financial crisis, saying that the bank "participated in things that were clearly wrong and have reason to regret."
But it's tough to take Blankfein at his word. This mea culpa came a little more than a week after he made an embarrassing comment in an interview with the Financial Times, saying that he was just "doing God's work." Interesting. I don't believe there are any references to credit default swaps in the Bible, Torah, Koran or any other religious text.
While Blankfein might have made the "God's work" comment in jest, it still goes to show that he needs to tread carefully if he really wants to prove to taxpayers that Goldman is not really the blood-sucking parasite that many are now making it out to be.
Goldman is facing a populist backlash because it was one of the original nine firms to receive bailout funds last fall. But it is now all of a sudden generating gigantic profits again and putting away large wads of cash for employees in its bonus pool.
Goldman has earned $8.4 billion in the first nine months of 2009. The company has already set aside $16.7 billion for compensation expenses, putting it on track to have a bonus pool of about $21 billion at year's end.
So it's no wonder that Blankfein has turned the spin cycle on over the past few months to try and send the message that Goldman Sachs (GS, Fortune 500) is the Wall Street equivalent of Google, i.e. it won't do evil.
On Tuesday, Goldman announced that it, along with investing legend Warren Buffett, is launching a $500 million program geared toward helping small businesses.
That's certainly admirable even though it's fair to cynically point out that Buffett's Berkshire Hathaway (BRKA, Fortune 500) investment firm is Goldman's largest shareholder. So I don't think I am going out on a limb to guess that the idea for this largesse probably had its roots in Omaha as opposed to the corner offices on Broad Street.
http://money.cnn.com/2009/11/18/markets/thebuzz/index.htm
< Message edited by prophet -- 11/18/2009 8:51:00 PM >
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Create in me a Clean Heart, O Lord.
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RE: US Bankers control USA - 11/19/2009 9:51:49 PM
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GroupW
Posts: 2526
Joined: 11/16/2007
From: Up in the hills of Colorado (very BIG hills...)
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Probably not an Omaha thing. Buffet generally doesn't do charitable stuff out of his companies. He's written extensively on it that he believes charitable giving is a personal thing. He thinks he should be as profitable as he can for his shareholders so THEY can give to charity as best THEY see fit.
_____________________________
“For every problem, there is a solution that is simple, elegant and wrong.” -H.L. Mencken
"Most people would rather die than think; in fact, they do so." -Bertrand Russell
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