atans1

Posts Tagged ‘Goldman Sachs’

Goldman Sachs administration not Trump administration

In Uncategorized on 01/12/2016 at 4:59 pm

Gary Cohn considered for Trump administration. President-elect Donald J. Trump is considering the president of Goldman Sachs for a senior administration job, possibly as director of the Office of Management and Budget, several sources close to the situation said. – Politico

NYT Dealbook

If this comes about, there’ll be three ex-Goldman Sachs partners in senior posts: his chief strategist and his nominated Treasury Sec were Goldie partners.

And for the record, his proposed Commerce Sec was the CEO of Rithschild Inc, the US arm of the Rothschilds.

Debt is good

In Uncategorized on 21/11/2016 at 5:42 pm

Somehow I don’t think Americans (and btw S’poreans) need to be taught how to “destigmatize debt; they embrace debt.  But S’poreans sure need to “explore new ways of managing their debt” what with a recession coming, and property prices tottering. LOL.

From NYT’s Dealbook:

Goldman’s Ad Pitch for the Masses

As part of Goldman Sachs’s push into consumer lending, the bank wants Americans to know that debt happens.

That message is central to its first ad campaign that is aimed at individuals — even those who may barely qualify for credit.

The 15- and 30-second video ads, which will appear on Facebook, Hulu, Pandora and YouTube, depict debt as an unavoidable nuisance of modern life, not something shameful. “Debt happens. It’s how you get out that counts,” the ads say.

Dustin Cohn, who oversees brand management for Goldman’s new consumer lending arm, Marcus by Goldman Sachs, said the bank’s aim was to “destigmatize debt and help consumers explore new ways of managing their debt.”

MU: Thrilled I’m sure fans are

In Footie, Investment banking, Malaysia on 14/09/2016 at 2:33 pm

MU  has become the first British football club to earn more than half a billion pounds in a year.

Manchester United has recorded record revenues of £515.3m for the 2016 financial year, the first UK football club to do so.

In a year when it won the FA Cup, the Old Trafford club also signed 14 sponsorship deals, and saw commercial, matchday and TV revenues all rise.

It is now predicting 2017 revenues of up to £540m, even though it is not in the Champions League this season.

The club’s accounts up until 30 June 2016 confirm that the Premier League club was the first British team to break the half-billion mark, but the figure is short of Barcelona’s €679m (£570m) revenue revealed in July.

The Premier League giants also revealed operating profits of £68.9m, and adjusted core earnings of £191.9m, both also records.

“Our record fiscal 2016 financial performance reflects the continued underlying strength of the business and the club is on target to achieve record revenues in 2017, even without a contribution from the Champions League,” said executive vice-chairman Ed Woodward.

http://www.bbc.com/news/business-37339740

A very Jewish achivement.

Too bad about the major trophies and playing in Europe. )))))

Lest I be accused of anti-Semtisim, I’m proud of the fact that I worked in Rothschild S’pore and shook the hand and had dinner with the then owner, Sir Evelyn. Actually it is the firm that in hindsight I regretted leaving for greener pastures. It was a really nice place to work in. Too bad about the pay though.

Btw, Rothschilds is the regular adviser to MU, and at times to its owners, the Glazers. The relationship to MU predates the Glazers.  Rothschild has had an office in Manchester since the 19th century.

And btw2, I’m sure you have read that Goldman Sachs made good money in M’sia before running into problems with the US marshalls.

Well in the 1970s when Dr M became PM and started buying ownership of plantations and mines from UK-based investors, Rothschild was the go-to bank for M’sia. It wasn’t that Dr M was supportive of the Jewish houses in London. But the central bank governor, Tun Ali, had good ties with the London Rothschilds. He was btw also a brother-in-law of Dr M. A character. Shook his hand and helped look after him during one of his visits here for a conference.

Why Goldie wants to be the people’s bank

In Banks, Internet, Investment banking on 29/08/2016 at 3:26 pm

The maths behind Goldman Sachs move into retail internet finance

As it has done many times in its past to survive and to thrive, Goldman is in the process of reinvention. This explains Marcus, its new online lending business named after the company’s founder, Marcus Goldman, along with GS Bank, its online savings account business with no minimum balance requirements. After all these years, Goldman Sachs has suddenly discovered retail banking. But it is not out of altruism or charity, nor is it nefarious. It is all about making money from money, which has always been Goldman’s specialty. In fact, GS Bank and Marcus fit together elegantly in helping Goldman find new sources of profitability.

And here’s why: In the zero-interest-rate environment that the Federal Reserve has carefully curated for eight years, Goldman and other banks can gather up money — the raw material they use to make more money — at virtually no cost. By opening an online bank, Goldman can gather up billions of dollars in consumer deposits without the cost of a physical branch and pay its customers close to nothing for their money. Goldman is offering to pay savers 1.05 percent annually. That may sound like close to zero, and it is, but the rate is also nearly 17 times more than the 0.06 percent annual interest rate that JPMorgan pays me on my savings account.

Goldman’s idea is to get people like me to move my money, of course. Sure, the 1.05 percent is a teaser rate, created to attract billions of dollars to Goldman’s new venture. And it will no doubt work. Since April, GS Bank has collected $1.8 billion in deposits, essentially by word of mouth.

Goldman will then take that raw material and use it to make more money, in large part by lending it out through its online lender Marcus, which aims at consumers looking to borrow around $20,000. Goldman will charge plenty more in interest for these loans than the 1 percent it is paying savers at GS Bank. Although its terms will not be known until Marcus rolls out officially in October, assume for the moment that the going rate for consumer loans of this nature – if both Lending Club and Prosper are useful guides – is around 12 percent. That difference – the 11 percentage points – is what Goldman will largely rake in as profit.

1MDB: Worth it Goldmans?

In Malaysia on 06/07/2016 at 6:15 am

Top US gun-slinging marshall is shaking down Goldie.

The asset forfeiture and money laundering division unit in the Justice Department is investigating the above deal according to the FT. Goldman could be fined US$1bn or worse, managers involved could get indicted.

The division’s main hallway is lined with framed testimonials to the corporate scalps it has collected over the years, including those of companies such as Enron and Bank Credit and Commerce International.

Btw, Goldmans become a pariah in KL: can’t get mandates. FT reports that a source said it was not invited to pitch on government bond issuances in April, or for recent debt and equity-raising deals for Khazanah

The Death of the Banker

In Investment banking on 22/06/2016 at 2:24 pm

The Decline and Fall of the Great Financial Dynasties and the Triumph of the Small Investor

The above is a title of a book That I read in the noughties. I  was reminded of the book and its thesis that the fund mgrs that manage the “little people;s” money dominate the financial landscape where once investment and commercial banks ruled the roost.

NYT Dealbook reports that Goldman Sachs is courting retail money: US$1 is enough to open an account:

GOLDMAN SACHS HEADS TO MAIN STREET You used to need $10 million to become a customer at Goldman Sachs, but now you can get in with just a dollar, Nathaniel Popper reports in DealBook.

GS Bank, started in April, promises “peace-of-mind savings” and “no transaction fees.” It is aimed squarely at ordinary Americans – the sort of clientele the company scrupulously avoided during its first 147 years in operation.

Goldman, which previously favored tycoons and plutocrats, is hunting for new businesses, just like other marquee banking companies. Regulations have squeezed deal-making activity and the bond trading desks that generated most of Goldman’s precrisis profits now only make a fraction of what they did before.

Goldman has also been preparing to introduce 401(k) accounts, loans for people saddled with credit card debt and new investment funds that can be purchased by anyone with an E-Trade account. All of these services will be offered online only, saving Goldman on the expense of traditional branches and tellers.

Goldman executives have been debating whether they want to end up to with something resembling a full-service online bank, they could still back off if the initial experiments fail.

So far, interest has been strong. Stephen Scherr, the chief of strategy for Goldman, said the bank had opened tens of thousands of new accounts in its first few weeks, in addition to the 150,000 it acquired from GE Capital.

Its 50-person call center in Cedar Rapids, Iowa, was unprepared for the surge of interest. And soon after the bank’s debut, a columnist at The Wall Street Journal wrote about the problems he encountered trying to open an account.

The bank’s moves have prompted some head-scratching in the industry as it has so little experience in retail banking. It also faces the challenge of persuading Americans to use a bank that has been maligned as a symbol of Wall Street greed. The bank would have to pull in huge numbers of people to make even a tiny difference to its annual revenue. Goldman’s big test comes later this year when it starts offering relatively small loans of around $15,000 to $25,000.

 

Fall of BSI and Goldie rainmaker: From heroes to zeroes

In Banks, Malaysia on 14/06/2016 at 1:17 pm

How a 143-Year-Old Swiss Bank Took a Quick Road to Ruin in Asia When a rainmaker left RBS Coutts with 70 colleagues for BSI, a small Swiss bank looking to get big in a hurry, it set off a chain of events that thrust the bank into the center of the financial scandal involving 1MDB.

NYT Dealbook

And here’s how a Goldman Sacks partner, whose wife called Rosmah Najib (FLOM or self-styled First Lady of M’sia) a friend, became a zero

http://www.bloomberg.com/news/articles/2016-03-30/the-rise-and-fall-of-tim-leissner-goldman-s-big-man-in-malaysia

Fed Warned Goldman on Malaysian Deals

In Malaysia on 09/04/2016 at 11:28 am

Federal Reserve regulators had raised concerns with Goldman Sachs that deals that it helped put together for a Malaysian government investment fund, 1Malaysia Development Berhad ( 1MDB), could have put the firm’s reputation at risk, The Wall Street Journal reports, citing people familiar with the matter.

1MDB: FBI examining Goldman Sachs

In Corporate governance, Malaysia on 16/10/2015 at 4:28 pm

NYT Dealbook:

Role of Goldman Sachs in 1MDB Transactions Under Scrutiny Investigators at the Federal Bureau of Investigation and the Justice Department have begun examining Goldman Sachs’s role in a series of transactions at 1Malaysia Development Berhad, The Wall Street Journal reports, citing people familiar with the matter.

 

Banks’ Alice-in-Wonderland Accounting

In Accounting, Banks on 28/10/2011 at 7:02 am

The problem with a bank’s balance sheet is that on the left side nothing’s right and on the right side nothing’s left.

Think Lehman’s and Dexia’s balance sheets. One day AAA, six months’s later rubbish. That fast leh?

Profit and loss accounts are just as rubbishy. Recently UBS’s third quater profit fell to 1.02 billion Swiss francs (US$1.2 billion) in the three months ended Sept. 30 from 1.66 billion francs in the period a year earlier. The trading loss of  1.85bn Swiss francs (alleged caused by a rogue trader) and charges linked to a cost-cutting plan were partly offset by an accounting gain on the bank’s own credit of 1.8 billion francs and the sale of some investments.

Now this accounting treatment was not not only used by UBS. According to the FT’s Lex, four-fifths of the US$16bn net profits  in the latest announced results of (BoA, Citi, JPMorgan, Morgan Stanley and Goldman Sachs came from using used the same accounting treatment of the banks’ own debts.

Lex describes the accounting treament thus: ” Try this on your credit card company: your creditworthiness has weakened, so you write down the value of what you owe them to reflect the greater riskthat you will not pay it back and credit the difference to your personal account. That is what exactly accounting allows”.

UBS: What else can go wrong?

In Accounting, Banks, GIC on 27/10/2011 at 6:36 am

Readers will know by now that UBS, where GIC is a major long-term (and suffering)  investor, is planning to reduce the scale of its investment banking operations, the source of its on-going problems since 2007.

But they may not know “What they are trying to do has never been done before,” Christopher Wheeler, an analyst at Mediobanca, said. “They want to shrink the investment bank by choice, which means unwinding positions without loss and running down their books while keeping the morale among staff, and it’s unclear who’s running the shop.”

And don’t be fooled by its latest results. Despite being hit by a 1.85bn-franc loss from deals made by an alleged rogue trader, it just made  a better-than-expected third-quarter net profit of 1bn Swiss francs (US$1.1bn).

The loss was almost entirely offset by a 1.77bn-franc accounting gain that came from changes to the value of the bank’s own debt. One of these days, I’ll blog on the Alice-in-Wonderland accounting that allows this type of gain to materialise. According to the FT’s Lex, four-fifths of the US$16bn net profits  in the latest announced results of (BoA, Citi, JPMorgan, Morgan Stanley and Goldman Sachs came from using used the same accounting treatment of the banks’ own debts.

He bot preferreds, stupid

In Investments on 01/10/2011 at 6:57 am

Or the perils of trying to copy Buffett by buying ordinary GE and Goldman Sachs shares. http://dealbook.nytimes.com/2011/09/14/buffetts-not-so-golden-touch/?nl=business&emc=dlbkpma21

Goldman is worth breaking up?

In Financial competency, Investments, Uncategorized on 13/09/2011 at 8:10 am

Masterclass in back of envelope calculations.

http://www.nytimes.com/2011/09/08/business/breaking-up-could-be-good-for-goldman.html?nl=business&emc=dlbka23

Value investing at its best

In GIC, Temasek, Uncategorized on 02/05/2010 at 7:05 am

Buffett has a big stake in Goldman Sachs and the recent problems there had “experts” saying that he must have lost serious money. But no: the fall is gd for him, “Heads he wins, tails he still wins”.

FT reports:

In a surprising turn however, Mr Buffett, also explained that the travails at Goldman had been specific net positive for Berkshire, which bought $5bn of preferred shares paying a 10 per cent coupon at the heart of the credit crisis when Goldman was in need of additional funds.

Despite the roller coaster share price ride, Mr Buffett said that the headline challenges facing Goldman made it less likely that the bank would call its preferred shares. Those earn Berkshire almost $500m a year. If it the shares were called Berkshire would get $5.5bn back, but could only deposit that in low interest accounts earnings less than $20m a year.

“Every day that Goldman does not call our preferred is money in the bank,” Mr Buffett said. “Our preferred is paying $15 per second … so as we sit here… tick tick tick … its $15 in the bank. I don’t want those ticks to go away.”

If only the FTs, scholars and ex-SAF generals were quarter as gd, GIC and Temasek could make better returns, giving government more money to help the needy. They should realise, as FT’s Lex says, Funny how “once in a lifetime” opportunities roll around every few years or so.

Footie: Did you know?

In Uncategorized on 02/05/2010 at 5:36 am

Political divisions in Lebanon are  so deep and tensions are so high that football fans are not allowed to attend matches.The authorities fear that clashes between supporters of opposing teams could spill onto the streets and soon escalate into armed warfare.

Goldman Sachs, an investment bank, was considering buying ‘Pol.

That they developed a business model – however sketchy and premature Goldman Sachs would like us to think it was – based on the development of Liverpool’s new stadium should give hope to the club’s long-suffering supporters

..  it is revealing that a deal put together by a bank of that stature – and after so many failed attempts to resolve the financial problems at the club – still fell down because the price Hicks and Gillett were asking was too high.

‘Pol: Lingering death?

In Uncategorized on 17/04/2010 at 4:12 am

One was the worse kept footie secrets is out.  The present owners want out of  ‘Pol after saddling it with massive debts, not winning the EPL, and now playing for the foreseeable future in the Europa League, Europe’s second tier competition. Article. Pls read the bit in bold below on the chances of a sale.

Goldman Sachs, an investment bank, was considering buying ‘Pol.

That they developed a business model – however sketchy and premature Goldman Sachs would like us to think it was – based on the development of Liverpool’s new stadium should give hope to the club’s long-suffering supporters

..  it is revealing that a deal put together by a bank of that stature – and after so many failed attempts to resolve the financial problems at the club – still fell down because the price Hicks and Gillett were asking was too high.

Small- hearted Evertonians will be pleased that No Europe for Everton is coupled with ‘Pol playing in Europa League next season and ownership instability.