Banking Reporter, New York
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Jul 16, 2010

Goldman Sachs settlement may extend CEO tenure

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) Chief Executive Lloyd Blankfein may have saved his job by reaching a $550 million settlement with regulators, a relatively mild rebuke for a firm accustomed to pumping out billions of dollars in profits each quarter.

Blankfein and his firm have suffered a tumultuous three months since the U.S. Securities and Exchange Commission announced civil fraud charges against Goldman, but now the CEO — who has led the firm since 2006 — can take credit for calming investors and nervous employees.

Jul 16, 2010

Goldman shares surge on news of SEC settlement

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) shares opened 4.7 percent higher on Friday, the morning after the Wall Street firm agreed to pay $550 million to settle civil fraud charges.

The U.S. Securities and Exchange Commission agreed to settle charges against Goldman stemming from the bank’s packaging and marketing of the Abacus 2007 collateralized debt obligation, a mortgage-linked security that turned toxic during the financial crisis.

Jul 16, 2010

Goldman to settle with SEC for $550 million

WASHINGTON/NEW YORK (Reuters) – Goldman Sachs Group Inc agreed to pay $550 million to settle civil fraud charges over how it marketed a subprime mortgage product, ending months of negotiations that rattled the bank’s clients and investors.

The U.S. Securities and Exchange Commission said the penalty was the largest ever for a financial institution, and leaves the door open for future civil suits.

Jul 16, 2010

Goldman settles with SEC for $550 mln; shares surge

WASHINGTON/NEW YORK, July 15 (Reuters) – Goldman Sachs
Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) agreed to pay $550 million to settle civil
fraud charges over how it marketed a subprime mortgage product,
ending months of negotiations that rattled the bank’s clients
and investors.

The U.S. Securities and Exchange Commission said the
penalty was the largest ever for a financial institution, and
leaves the door open for future civil suits. [ID:nN15225672]

Jul 15, 2010
Jul 12, 2010

Morgan Stanley private equity co-head to resign

NEW YORK (Reuters) – Steve Trevor is resigning as co-head of Morgan Stanley’s (MS.N: Quote, Profile, Research) private equity division, the latest change as the Wall Street firm overhauls its investment management unit.

Morgan Stanley Investment Management chief Gregory Fleming announced Trevor’s departure in an internal memo obtained by Reuters on Monday.

Jul 8, 2010

Goldman, Morgan Stanley saw turbulent Q2

NEW YORK (Reuters) – Goldman Sachs Group(GS.N: Quote, Profile, Research) and Morgan Stanley(MS.N: Quote, Profile, Research) have generated billions of dollars of revenue from fixed income trading over the last year, but that profit engine may have sputtered in the second quarter as bond markets grew turbulent.

Analysts have cut their earnings estimates for the two investment banks in recent weeks, citing concerns about fixed income trading, as well as merger advisory revenue and stock trading. The two banks are set to report results later this month.

Jul 6, 2010

Goldman gets long-awaited upgrade

NEW YORK, July 6 (Reuters) – Goldman Sachs Group Inc
(GS.N: Quote, Profile, Research) finally got an upgrade on Tuesday after downgrades from
more than half a dozen key analysts in recent weeks.

JPMorgan analysts Kian Abouhossein and Delphine Lee boosted
Goldman to “overweight” from “neutral,” citing its strong Tier
1 capital levels and noting its “best in class” of market
risk-weighted-assets, following the proposed new Basel rules.

Jul 2, 2010

Crisis panel targets Goldman as AIG skates by

NEW YORK (Reuters) – The commission studying the worst financial crisis in decades might be doing a disservice to history by focusing this week on Goldman Sachs Group Inc as the ultimate Wall Street villain while going lightly on another key player, AIG.

During two days of hearings this week, the congressionally-appointed Financial Crisis Inquiry Commission called 10 current and former Goldman and American International Group Inc executives as witnesses, quizzing them about transactions between the financial giants.

Jul 1, 2010

Goldman says claims against AIG were legitimate

WASHINGTON (Reuters) – Goldman Sachs officials insisted demands for billions of dollars from insurer AIG ahead of a $182-billion government rescue package were based on legitimate market prices and denied gaming values for a massive payout.

Members of the Financial Crisis Inquiry Commission peppered Goldman witnesses with questions on Thursday about their aggressive demands for collateral from AIG and why the market values triggering those demands were often lower than others.

    • About Steve

      "Steve Eder, based in New York, covers investment banks for Reuters. He came to Reuters in May, 2009, after working as an investigative reporter for the Toledo Blade newspaper in Ohio. Eder has written about plant closings, the health insurance industry, poverty, and public corruption, helping to expose Ohio's 'Coingate' scandal. He also completed assignments to India and South Korea. Since joining Reuters, Eder has written about the aftermath of the financial crisis, Goldman Sachs and the debate over Wall Street bonuses."
      Joined Reuters:
      May, 2009
      Awards:
      Loeb Award, 2006
      Finalist, Pulitzer Prize for Public Service, 2006
      National Headliner Award, 2006
      Finalist, IRE Award, 2006 and 2008
      Best Ohio Reporter, Cleveland Press Club, 2009
      Finalist, Livingston Award, 2009 and 2010
      Reuters Company News Story of the Year, 2009
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