Comments on: Who could be chairman of Goldman Sachs? http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: DanHess http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14534 Thu, 06 May 2010 18:45:06 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14534 The NYTimes article suggests that they were of the same type. But its true, we don’t know the details.

One thing is certain is that Goldman is getting a disproportionate share of the beatings of late. J.P. Morgan and other banks did many of the same things…

I think it is because they are the leader. Because they are tops, they need to be much cleaner than second tier, fly-by-night firms. It is not enough to have average standards. You may give up a lot of sketchy business but you will get better business.

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By: AEinCH http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14532 Thu, 06 May 2010 18:14:59 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14532 Thanks Dan, I read about those currency swaps years ago. As Danny mentioned it was widely covered in the financial press and published in the Greek national budget. But what makes you think the deal pitched in Nov. 2009 bore any resemblance to this transaction?

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By: DanHess http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14527 Thu, 06 May 2010 16:04:12 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14527 You called it refinancing and you are right. It was a plain old loan. There is nothing wrong with loans.

The deception was to structure it in a way as to make it look like a currency swap, hiding the loan. This is a trick against Greece’s bondholders since it makes Greece’s debt situation look better than it actually is. Making Goldman look even worse is the fact that they also bought credit default swaps against Greece knowing that the Greek debt situation was worse than publicly appreciated, having played a role in hiding that debt. The following link is thanks to Felix back in February.

http://www.risk.net/risk-magazine/featur e/1498135/revealed-goldman-sachs-mega-de al-greece
“the cross-currency swaps transacted by Goldman for Greece’s public debt division were ‘off-market’ – the spot exchange rate was not used for re-denominating the notional of the foreign currency debt. Instead, a weaker level of euro versus dollar or yen was used in the contracts, resulting in a mismatch between the domestic and foreign currency swap notionals. The effect of this was to create an upfront payment by Goldman to Greece at inception, and an increased stream of interest payments to Greece during the lifetime of the swap. Goldman would recoup these non-standard cashflows at maturity, receiving a large ‘balloon’ cash payment from Greece.”

Now Goldman is shocked, shocked by the present charges. Well, this is against a backdrop of other less-than-honorable things. Perhaps they are safe in the Greek debt case because several sovereign nations were involved and nobody raised a ruckus for several years. Still it says something about their gumption that they tried to go back to that particular well even after receiving a Wells notice. Perhaps that was on the mind of the SEC.

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By: AEinCH http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14513 Thu, 06 May 2010 06:49:24 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14513 “The bankers, led by Goldman’s president, Gary D. Cohn, held out a financing instrument that would have pushed debt from Greece’s health care system far into the future”

Sorry Dan, but do you have any specifics on how exactly the debt would have been pushed into the future? Wouldn’t this be true of any refinancing? The article isn’t sourced, so we have no idea how scammy the deal in question may have been.

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By: DanHess http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14507 Thu, 06 May 2010 03:42:50 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14507 DannyB —

You must not read much. Gary Cohn and his team went to Greece as recently as November 2009 to try to pitch the scam one last time. This time Greece proved to have a modicum of integrity and passed.

http://www.nytimes.com/2010/02/14/busine ss/global/14debt.html

I’ll help you out, in case reading is not your forte. Start at the fourth paragraph.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14505 Thu, 06 May 2010 03:29:53 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14505 DanHess, I know facts don’t matter to you but the size of the currency swaps was insignificant compared to the overall debt Greece had – it “hid” about 1billion USD – it was widely reported at the time – hardly “hiding” – and it was in 2002, not exactly “as public scrutiny grew” but don’t let this stop your “outrage”. I mean never did in the past right?

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By: edgyinchina http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14501 Thu, 06 May 2010 02:20:19 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14501 Edit: And Felix, how can you say this:
(The job) “comes with so much downside and so little obvious upside”.. This person will not be paid a handsome wage???? How can there be so little obvious upside????

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By: edgyinchina http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14500 Thu, 06 May 2010 02:16:10 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14500 Don’t worry Felix, Government Sachs will roll out someone to smooth all of this over, and then they can get back to the business at hand – Making Money…. And a year form now, when the mid-term elections are completed, no one will care, or even remember that any of this happened…

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By: right http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14494 Wed, 05 May 2010 23:19:23 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14494 Corzine was basically fired, right? Why not just bring back John Thain?

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By: Ghandiolfini http://blogs.reuters.com/felix-salmon/2010/05/05/who-could-be-chairman-of-goldman-sachs/comment-page-1/#comment-14490 Wed, 05 May 2010 22:19:49 +0000 http://blogs.reuters.com/felix-salmon/?p=3704#comment-14490 …so Dan, is that what totem poles are for, I always wondered, now I know, no wonder we are in such a mess, the economic barometer is a piece of dead wood.

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