Comments on: Goldman Sachs starts looking human http://blogs.reuters.com/felix-salmon/2010/07/20/goldman-sachs-starts-looking-human/ 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: breezinthru http://blogs.reuters.com/felix-salmon/2010/07/20/goldman-sachs-starts-looking-human/comment-page-1/#comment-17061 Mon, 02 Aug 2010 11:11:36 +0000 http://blogs.reuters.com/felix-salmon/?p=4781#comment-17061 According to the Public Version of the SEC investigation of Bernie Madoff, his average return on equity was 15.5% a year.

According to the New York Times, GS had its best year in 2007 at 38% return on equity. Immediately before the economic collapse “from November 2007 to September 2009, the Wall Street bank’s tangible common equity swelled by 74 percent.”

Think about that. The already immensely powerful and wealthy bank nearly doubled its wealth during that time period.

The guys working for GS are smart, but what they were doing to generate that kind of return of equity either is illegal or it should have been illegal.

What happened to that sudden burst of wealth? In 2007, did GS start offering Certificate of Deposit at interest rates approaching 38%? Did pension funds on deposit in GS see a 74% increase increase in value from November 2007 to September 2009?

Of course not.

That incredible burst of wealth, minus about $16 Billion a year in bonuses, was never distributed even somewhat fairly.

GS is indeed a private business, yet it operates under a federal charter and under federal laws and supposedly under federal oversight. Countries need financial systems that serve the needs of its businesses and its citizens.

However, GS has demonstrated that its prime directive is self enrichment, even if it comes at the expense of the businesses and American citizens banks are supposed to be serving.

What was the Senate Committee on Banking, Housing and Urban Affairs and the House Financial Services Committee doing during that time period to make sure the public interest was protected? An equally important question: What did those committees do in the preceding years undo post-depression reforms?

Most importantly, here is the question that I will keep asking until I hear a plausible answer:

How is it that a bunch of silk-suited wheelers and dealers in New York and Washington, DC brought the largest economy on the planet to its knees…

and nobody went to jail but Bernie Madoff?

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By: offpeak34 http://blogs.reuters.com/felix-salmon/2010/07/20/goldman-sachs-starts-looking-human/comment-page-1/#comment-16928 Wed, 21 Jul 2010 12:37:22 +0000 http://blogs.reuters.com/felix-salmon/?p=4781#comment-16928 “A couple more quarters like this, and it’ll lose the premium it’s still trading at.”

This has happened already. If you look at both trailing and forward p/e, Goldman no longer trades at a premium relative to its peers. In fact, Goldman now trades at a DISCOUNT to its peers. To a large extent the mystique is gone.

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By: CDNrebel http://blogs.reuters.com/felix-salmon/2010/07/20/goldman-sachs-starts-looking-human/comment-page-1/#comment-16912 Tue, 20 Jul 2010 20:38:35 +0000 http://blogs.reuters.com/felix-salmon/?p=4781#comment-16912 How deep shall we indulge the conspiracy nutters? Maybe the earnings report was doctored to be terribly low to buy them better PR and really get them off the radar? Don’t think they could pull that off, but I’ve certainly heard it a couple times today already…

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By: EpicureanDeal http://blogs.reuters.com/felix-salmon/2010/07/20/goldman-sachs-starts-looking-human/comment-page-1/#comment-16905 Tue, 20 Jul 2010 16:01:34 +0000 http://blogs.reuters.com/felix-salmon/?p=4781#comment-16905 “quid” = “squid”

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By: EpicureanDeal http://blogs.reuters.com/felix-salmon/2010/07/20/goldman-sachs-starts-looking-human/comment-page-1/#comment-16904 Tue, 20 Jul 2010 15:59:58 +0000 http://blogs.reuters.com/felix-salmon/?p=4781#comment-16904 “Nebulous and meaningless” is mother’s milk to public corporations’ investor relations departments, Felix, as is spin. Why should any of us be surprised?

After all, even the evil vampire quid Goldman Sachs puts on its gold-plated trousers only three legs at a time.

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