- Goldman Tops Forecast, With $3.46 Billion in Earnings
- Goldman Employees Rally Around Blankfein
- What the Committee Knew
- Goldman’s London Units Face Formal U.K. FSA Probe
- Financial News: FSA Goldman Probe May Spark Intl Crackdown
- Goldman Sachs CDO Lawsuit Split SEC Commissioners in 3-2 Vote
- The SEC’s Impeccable Timing
- AIG eyes action on Goldman over CDOs
- Goldman ‘Shenanigans’ to Be Barred by Bill, Dodd Says
- Kirk to Return Goldman Donations in Illinois Campaign
- Paulson Gave to Both Parties
- Goldman Sachs Is Loved by Those Who Really Count: Matthew Lynn
- SEC may have hard time finding other suits like Goldman
- Goldman Sachs’ Winning Loss?
Goldman Tops Forecast, With $3.46 Billion in Earnings – NYT
Beset by charges of securities fraud, Goldman Sachs nevertheless showed Tuesday that it was still very good at what it does best: making money.
Earnings for the Wall Street giant rose 91 percent in the quarter, to $3.46 billion or $5.59 a share in the first quarter of 2010, up from $1.81 billion or $3.39 a share in the same period last year, while revenues increased 36 percent to $12.78 billion, up from $9.42 billion in the quarter a year ago.
Analysts surveyed by Bloomberg had expected revenue of $11.05 billion and earnings of $4.14 a share…..
Goldman Employees Rally Around Blankfein – NYT
….Hours after the accusations of fraud at Goldman Sachs began to reverberate through Wall Street on Friday, voice mail message indicators inside the bank began to light up. Mr. Blankfein, the bank’s leader, was calling to assure anxious employees that Goldman was unbowed.
In the days since, Goldman’s board and employees have rallied around senior management, including Mr. Blankfein, the chairman and chief executive. Goldman employees are shocked, even angry, that the Securities and Exchange Commission has filed a civil fraud suit against their bank. Goldman is ready for a fight, and Mr. Blankfein, his defenders insist, will prevail…..
What the Committee Knew – WSJ
The 2007 mortgage deal that set off controversy at Goldman Sachs Group Inc. was quickly approved by a group of roughly a dozen senior executives in a routine meeting in a drab conference room, according to people familiar with the matter.
That group of senior-level executives—which included those helping to manage Goldman’s mortgage, credit and legal operations—has surfaced as an important participant in the Securities and Exchange Commission’s securities-fraud case against Goldman, which has rocked the firm and Wall Street…..
Goldman’s London Units Face Formal U.K. FSA Probe – Bloomberg
Goldman Sachs Group Inc.’s London units will be formally investigated by Britain’s financial regulator after U.S. authorities sued the bank for fraud.
The Financial Services Authority said in a statement today that it will begin a formal probe after the U.S. Securities and Exchange Commission filed a lawsuit over Goldman Sachs’s marketing of a collateralized debt obligation. The FSA said yesterday it was reviewing whether a full investigation into the New York-based bank was warranted.
“Following preliminary investigations, the Financial Services Authority has decided to commence a formal enforcement investigation into Goldman Sachs International in relation to recent SEC allegations,” the FSA said in an e-mailed statement. “The FSA will be liaising closely with the SEC.”….
Financial News: FSA Goldman Probe May Spark Intl Crackdown – WSJ
The U.K. Financial Services Authority’s decision to probe Goldman Sachs (GS) could be the “game changer” that leads to joined-up regulation of banks internationally, according to an ex-senior FSA lawyer.
Harvey Knight, head of the U.K. financial services practice at law firm Withers and an ex-senior lawyer at the U.K. regulator, said attempts to coordinate regulation internationally had been disjointed in the wake of the financial crisis…..
Goldman Sachs CDO Lawsuit Split SEC Commissioners in 3-2 Vote – Bloomberg
The U.S. Securities and Exchange Commission split 3-2 along party lines to approve an enforcement case against Goldman Sachs Group Inc., according to two people with knowledge of the vote.
SEC Chairman Mary Schapiro sided with Democrats Luis Aguilar and Elisse Walter to approve the case filed on April 16, said the people, who declined to be identified because the vote wasn’t public. Republican commissioners Kathleen Casey and Troy Paredes voted against suing, the people said yesterday…..
The SEC’s Impeccable Timing – WSJ
The Securities and Exchange Commission fraud case against Goldman Sachs may be settled before it ever sees a courtroom. Yet intentionally or not, the SEC has already secured at least one victory in the court of media opinion.
Last Friday, the same day that the government unexpectedly announced its Goldman lawsuit, the SEC’s inspector general released his exhaustive, 151-page report on the agency’s failure to investigate alleged fraudster R. Allen Stanford. Mr. Stanford was indicted last June for operating a Ponzi scheme that bilked investors out of $8 billion. He has pleaded not guilty.
Guess which of these two stories was pushed to the back pages? The SEC did its part by publishing the Stanford report so deep in its Web site that more than a few of our readers had trouble finding it. Yesterday, the SEC management’s response to the report was available on the agency’s homepage, yet it provided no links to the report itself…..
AIG eyes action on Goldman over CDOs – FT
AIG, the US governmentcontrolled insurer, is considering pursuing Goldman Sachs over losses incurred on $6bn (£3.9bn) of insurance deals on mortgage-backed securities similar to the one that led to fraud charges against the US bank.
AIG’s move over the deals that caused it a loss of about $2bn is a sign that Friday’s decision by the Securities and Exchange Commission to file civil fraud charges against Goldman could spark actions from investors who lost money on mortgage-backed securities…..
Goldman ‘Shenanigans’ to Be Barred by Bill, Dodd Says – Bloomberg
Senate Banking Committee Chairman Christopher Dodd said failure to enact his financial overhaul bill would leave the American public vulnerable to “shenanigans” at Goldman Sachs Group Inc. and other large firms.
The legislation to strengthen oversight of Wall Street would have prevented the fraudulent activity alleged in the Securities and Exchange Commission’s April 16 lawsuit against Goldman Sachs, Dodd said today at a news conference in Washington…..
Kirk to Return Goldman Donations in Illinois Campaign – Bloomberg
Congressman Mark Kirk said he plans to return campaign contributions given by employees of Goldman Sachs Group Inc. to his campaign for a U.S. Senate seat once held by President Barack Obama in Illinois.
“I want to set an example on ethics for others to follow,” Kirk said during a news conference in Chicago. “I will err on the side of caution and watch this case unfold.”
Kirk, 50, made the announcement after his Democratic opponent, Illinois Treasurer Alexi Giannoulias, criticized him today for taking money from the bank’s employees…..
Paulson Gave to Both Parties – WSJ
John Paulson, the man at the center of the government’s case against Goldman Sachs Group Inc., has held political fund-raising events in recent weeks for top politicians of both political parties.
According to people familiar with the events, Mr. Paulson organized one of the events on behalf of the Republican National Committee and featured RNC Chairman Michael Steele and Republican presidential hopeful Mitt Romney. The other was for Democratic Sen. Charles Schumer of New York.
Mr. Paulson’s bipartisan support for politicians points to the difficulty both parties face as they try to use the case against Goldman for political gain. Goldman was charged last week by the Securities and Exchange Commission with civil fraud relating to its trading in mortgage-related investments…..
Goldman Sachs Is Loved by Those Who Really Count: Matthew Lynn – Bloomberg
….Smart, ambitious graduates are still sending in their CVs as enthusiastically as ever. The big corporations still want the New York-based firm on their side. And it posted record earnings in 2009 while its stock price doubled.
There is a lesson in that for Wall Street investment banks. While spending millions on an army of public-relations officers, reputation consultants and sponsorship managers, financial institutions shouldn’t forget that people prefer their bankers to be greedy and mean. Being known for having sharp teeth, along with a nasty bark, won’t do you any harm. None of the scandals has hurt its business. This latest one won’t be any different…..
SEC may have hard time finding other suits like Goldman – Reuters
The civil lawsuit filed by securities regulators against Goldman Sachs Group from the sale of a security linked to subprime mortgages may not open the floodgates for similar enforcement actions of its kind as some believe might happen.
In fact, the case lodged by the Securities and Exchange Commission against Goldman and a 31-year-old bond salesman may prove to be more rare than initially believed, a close reading of legal documents in the matter reveals……
Goldman Sachs’ Winning Loss? – Barron’s
GOLDMAN SACHS’ $90 MILLION LOSS in the disputed synthetic mortgage security that is at the center of a government fraud claim could end up being an important defense for the embattled firm
“This is the best $90 million that Goldman ever lost,” one trader tells Barron’s……
Tags: AIG, CDO, fraud, FSA, Goldman Sachs, Hedge funds, John Paulson, Lloyd Blankfein, Paulson & Co, Politics, SEC, Subprime mortgages, Witchhunts
