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Apr 10, 2013

Analysis: How Goldman’s dollar-store bet reaped a fortune

By Lauren Tara LaCapra and Carrick Mollenkamp

(Reuters) – Goldman Sachs Group Inc has likely generated around $1.2 billion of revenue over six years from its dealings with discount retailer Dollar General Corp, a Reuters review shows. Just don’t expect the investment bank to boast about it.

Much of the revenue stems from an equity investment that is lumped into a catchall earnings segment called “Investing and Lending.” Goldman created the segment in 2011 to shine some light on how much money it makes from investing its own money, but it still confounds analysts and investors because the bank does not provide details on the performance of individual assets.

Apr 10, 2013

How Goldman’s dollar-store bet reaped a fortune

April 10 (Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) has
likely generated around $1.2 billion of revenue over six years
from its dealings with discount retailer Dollar General Corp
(DG.N: Quote, Profile, Research), a Reuters review shows. Just don’t expect the investment
bank to boast about it.

Much of the revenue stems from an equity investment that is
lumped into a catchall earnings segment called “Investing and
Lending.” Goldman created the segment in 2011 to shine some
light on how much money it makes from investing its own money,
but it still confounds analysts and investors because the bank
does not provide details on the performance of individual
assets.

Apr 4, 2013

Ex-Goldman trader Taylor pleads guilty to wire fraud

NEW YORK (Reuters) – Ex-Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) trader Matthew M. Taylor pleaded guilty on Wednesday to defrauding the Wall Street bank with an unauthorized $8.3 billion futures trade in 2007, saying he exceeded internal risk limits and lied to supervisors to cover up his activities.

Taylor, 34, pleaded guilty to one count of wire fraud in federal court in lower Manhattan on Wednesday morning, after voluntarily turning himself into federal authorities earlier in the day.

Apr 3, 2013

Ex-Goldman trader Taylor turns himself in to authorities -sources

NEW YORK (Reuters) – Ex-Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) trader Matthew Marshall Taylor has turned himself in to federal authorities in connection with charges that he defrauded the Wall Street bank out of $118 million in 2007, two sources familiar with the matter said.

Taylor voluntarily turned himself in to agents with the Federal Bureau of Investigation in New York around 8:30 a.m. EDT on Wednesday morning, said the sources, who spoke on condition of anonymity.

Mar 26, 2013

Buffett trades warrants for smaller stake in Goldman

By Ben Berkowitz and Lauren Tara LaCapra

(Reuters) – Warren Buffett has given up his chance to become Goldman Sachs Group Inc’s (GS.N: Quote, Profile, Research) largest shareholder by converting his warrants into a smaller stake in the bank at no additional cost to his Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research).

Buffett received the warrants as part of a 2008 deal during the depths of the financial crisis, when his investment in Goldman was seen as a vote of confidence in the firm. Under that deal, Berkshire had the right to buy about 43.5 million Goldman shares – or a roughly 9 percent stake – at an exercise price of $115 (75.83 pounds) per share, for $5 billion in total.

Mar 26, 2013

Buffett to take major Goldman Sachs stake in warrant deal

By Ben Berkowitz and Lauren Tara LaCapra

(Reuters) – Warren Buffett will become one of Goldman Sachs’ (GS.N: Quote, Profile, Research) ten largest shareholders essentially for free, after he and the bank amended a 2008 deal to exchange his potential profit on Goldman warrants for stock.

The exchange, which Goldman detailed on Tuesday, saves Buffett billions of dollars in upfront costs and lets Goldman minimize dilution to its stock. Under a 2008 deal, Buffett had held the right to acquire about 43.5 million shares of stock at an exercise price of $115.

Mar 26, 2013

Goldman Sachs, Berkshire amend crisis-era warrant deal

By Ben Berkowitz and Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) will give Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research, Stock Buzz) millions of shares in the bank in place of warrants that date to the financial crisis, a deal that saves Berkshire money upfront and reduces dilution risk for Goldman.

The deal will make Berkshire, the conglomerate led by investor Warren Buffett, one of Goldman’s 10 largest shareholders.

Mar 23, 2013

Wall Street bonuses to rise 15 pct this year – consultant

NEW YORK (Reuters) – Bonuses at Wall Street firms will rise 15 percent this year despite ongoing pressure from investors, regulators and politicians about compensation levels, according to compensation-consulting firm Johnson Associates Inc.

The projected rise in pay would come after a 5 percent increase in 2012, which was considered “disappointing,” Alan Johnson, head of the firm, said in a presentation to the Wall Street Compensation and Benefits Association that was released publicly on Friday.

Mar 22, 2013

Wall Street bonuses projected to rise 15 pct this year -consultant

NEW YORK, March 22 (Reuters) – Bonuses at Wall Street firms
will rise 15 percent this year despite ongoing pressure from
investors, regulators and politicians about compensation levels,
according to compensation-consulting firm Johnson Associates
Inc.

The projected rise in pay would come after a 5 percent
increase in 2012, which was considered “disappointing,” Alan
Johnson, head of the firm, said in a presentation to the Wall
Street Compensation and Benefits Association that was released
publicly on Friday.

Mar 22, 2013

Exclusive: Fed pushes banks to ignore rivals when setting bonuses

NEW YORK (Reuters) – The Federal Reserve is pushing banks to ignore competitors’ performance when awarding bonuses, and focus squarely on their own profitability, according to pay consultants and other people familiar with the matter.

The central bank is hoping to change a deeply ingrained habit on Wall Street: awarding bonuses to senior executives based in part on whether the company’s performance lagged or beat rivals.