The Great Debate UK

from The Great Debate:

Don’t bank on clients to punish Goldman

April 20, 2010

So remind me, why will clients continue to do business with Goldman Sachs?

I know, it is a stupid question; investors and corporations will continue to do business with Goldman even after the bank has been charged with an alleged fraud for the same reasons they always have: because they hope, like every gambler, to beat stacked odds and because they flatter themselves that they are not the sucker at the table.

There is also the small matter that for most of the clients of Goldman -- or more particularly the people at those institutions making decisions -- the money really isn't theirs but the rewards definitely will be.

from Breakingviews:

Europeans won’t be amused by alleged Goldman scam

By Hugo Dixon
April 16, 2010

Europeans won't be amused by the alleged Goldman Sachs scam. ABN Amro, and therefore ultimately Royal Bank of Scotland, ended up losing $841 million in the allegedly fraudulent collateralised debt obligation investment concocted by the investment bank. Meanwhile, IKB, the bust German bank, lost nearly $150 million.

from The Great Debate:

Goldman makes financial reform passage certain

April 16, 2010

-- John Kemp is a Reuters columnist. The views expressed are his own --

It is now virtually certain financial reform legislation will go sailing through the Senate, following the complaint filed against Goldman Sachs  and an employee in the U.S. District Court for the Southern District of New York by the Securities and Exchange Commission this afternoon.

from Breakingviews:

Goldman Sachs needs to admit it made mistakes

March 1, 2010

By Chris Hughes

Even the mighty Goldman Sachs makes mistakes. The Wall Street bank's decision to help Greece keep some of its debts hidden from public view in 2001 was one of them.

from Breakingviews:

Four factors to determine bank returns

January 5, 2010

larsen.jpgWhat is an acceptable return on equity (ROE) for a bank? That question is likely to dominate the debate among executives, investors and regulators in the coming year. After the spectacular losses of the crash, there is no doubt that banks' future returns should be lower than the super-charged profits earned during the credit boom. But if ROEs fall too far, the consequences could be severe.

from Commentaries:

Is Goldman’s Chinese convertible really a taxi?

September 21, 2009

BRITAIN/The number of London's trademark black taxis booked and waiting outside the European headquarters of Goldman Sachs -- meters running -- was once used by some as a barometer of the health of London's investment banking business.

from Commentaries:

Shock! Goldman favours big clients

August 24, 2009

Susanne Craig uses 2,200 words in today's Wall Street Journal that state the obvious: Goldman Sachs treats big clients better than small ones.

from Commentaries:

Citi’s dirty pool of assets

August 12, 2009

Hard as it may be to believe, shares of beleaguered Citigroup are on fire.

The stock of the de facto U.S. government-owned bank is up some 300 percent after it cratered at around $1 back in early March.

from The Great Debate:

Matt Taibbi Is just plain wrong about Goldman Sachs

August 7, 2009

-- Heidi N. Moore is a business writer in New York City. This article originally appeared in The Big Money. The views expressed are her own. --