Lauren's Feed
Apr 15, 2013
via Unstructured Finance

Goldman, AIG and the government renew their friendship

Scanning Goldman Sachs’s newly published interactive annual report on Monday, Unstructured Finance had to do a double-take upon seeing American International Group highlighted as a client success story.

Yes, that’s right. AIG.

Goldman’s site features a 3-minute, 47-second video with two investment bankers, Devanshu Dhyani and Andrea Vittorelli, talking about their work on various AIG deals to help repay the U.S. government.

Apr 12, 2013

Goldman CEO Blankfein got 75 percent compensation boost in 2012

NEW YORK (Reuters) – Goldman Sachs Group Inc’s (GS.N: Quote, Profile, Research, Stock Buzz) board awarded Chief Executive Lloyd Blankfein a 75 percent increase in compensation, to $21 million, for 2012 – including pay, bonus and restricted stock award.

His pay was unchanged at $2 million, but both his cash bonus and stock award almost doubled to $5.7 million and $13.3 million, respectively.

Apr 11, 2013

SEC tells banks to improve structured note disclosures: filings

NEW YORK (Reuters) – The Securities and Exchange Commission told five big Wall Street banks last year to improve disclosures about structured notes that are mostly sold to retail investors, and criticized use of the term “principal protected” in marketing materials.

The SEC sent letters to JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz), Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz), Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz), Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) and Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) on April 12, 2012, with 14 comments about their marketing, pricing and distribution practices for structured notes that the banks issued from April 2009 through March 2012.

Apr 11, 2013

U.S. SEC tells banks to improve structured note disclosures -filings

NEW YORK, April 11 (Reuters) – The U.S. Securities and
Exchange Commission told five big Wall Street banks last year to
improve disclosures about structured notes that are mostly sold
to retail investors, and criticized use of the term “principal
protected” in marketing materials.

The SEC sent letters to JPMorgan Chase & Co, Bank of
America Corp, Citigroup Inc, Goldman Sachs Group
Inc and Morgan Stanley on April 12, 2012, with 14
comments about their marketing, pricing and distribution
practices for structured notes that the banks issued from April
2009 through March 2012.

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.