Goldman Sachs: "Damn American Bastards!"

As one of the last medias in the world to raise questions about the global activity of Goldman Sachs, the Norwegian newspaper Dagens Næringsliv last weekend published a comprehensive critical article about the famous Wall Street bank. In the article Norwegian fund manager, Jan Eiler Fleischer, calls Goldman Sachs for “damn American bastards”. The Nordic Goldman-boss, Casper von Koskull, is “shocked”.

“It proves absolutely nothing.”

Casper von Koskull

Goldman Sachs is no longer portrayed as an impeccable monetary castle, but as a greedy giant who continues the bonus party even after taxpayers helped them out of the financial crisis, the Norwegian newspaper observes, adding that the bank has become like a swear word among the bloggers by the name of “Goldman Sucks”.

“Goldman Sachs has had more than one finger in most of what has gone wrong in the financial sector over the past decade,” the newspaper concludes:

“Was it not the company’s former chief executive Henry Paulson who in 2004 fought for the investment banks would have to take as much risk as they would?”

“Was it not Goldman Sachs who in a predatory way sold securities they knew were garbage in 2007? Who laid the basis for the food speculation in 2008, and turned Greece into a casino in 2010?”

Dagens Nærlingsliv also points out that Goldman Sachs have been involved in major deals in the Norwegian markets.

Manipulated Investors

When the Norwegian state owned telephone company, Televerket, was privatized and listed at Oslo Stock Exchange in the mid 90’s, Goldman Sachs was brought in as a facilitator for Telenor‘s IPO.

Jan Eiler Fleischer

Head of equity at Gambak, fund manager Jan Eiler Fleischer, says he heard that the American demand for Telenor’s shares was strong. But according to Fleischer, it was the Goldman Sachs who spread rumors in the market that the issue was heavily oversubscribed.

“To get 100,000 shares, you had  to sign up for a million, I was told. So that’s what I did,” Fleischer recalls.

When the rumors turned out not to be true, Gambak, like many other funds, had been awarded too many shares and had to sell out heavily the day after Telenor’s listing.

This resulted in losses for the investors, but also a large turnover and a higher income for Goldman Sachs.

When asked about Goldman Sachs, Mr. Fleisher replies:

“Goldman Sachs? Damn American bastards! They made complete fools out of us.”

“It is one of the most dirty things I have ever experienced. Goldman Sachs and U.S. brokerages are extremely short sighted when they come to Norway. They don’t give a shit about us,” the Norwegian fund manager says.

Goldman Executive is “shocked”

One could imagine that the management of Goldman Sachs would be kinda used to the negative publicity by now, but managing director of the Nordic region, Casper von Koskull, is obviously not:

“I was shocked when I read the article in Dagens Næringsliv about the Goldman Sachs,” he writes in a Letter-to-Editor, published a week later.

Casper von Koskull

“This is a grossly distorted representation of Goldman Sachs. The allegations are so false, and the description of the company and its actions so far from the truth, that the article only be described as pure fiction.”

“By combining new and old speculation, allegations and accusations that are false facts, Goldman Sachs is presented as the creator and the “spin doctor” behind the entire financial crisis. This is as unreasonable as it is inaccurate.”

“The fact that a number of unsubstantiated allegations, speculations and accusations are recycled and boiled together in an article, makes them no more truthful than they have been before. On the contrary; it proves absolutely nothing,” von Koskull of Goldman Sachs underlines.

Related by the Econotwist:

AIG: What Did FED Bail Out and Why?

EU Wants Answers From Wall St. On Greek Debt

Ordnung muss sein

The Bailout Package Under The Christmas Tree

2010 Analysis: Zero Interst Rate until 2012

Wall Street: “God’s Work”

Gullringenes Herre

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Filed under International Econnomic Politics, National Economic Politics

10 responses to “Goldman Sachs: "Damn American Bastards!"

  1. Pingback: Former Goldman Sachs Banker Become New ECB President | EconoTwist's

  2. Pingback: Telecom Giants Merge To Create Global Telecom Monster « The Swapper

  3. SEC fine = 2 wks of profit at Goldman. Slap on the wrist?


    • econotwist

      I just discovered this…at first I thought it was a joke, a typo or some non-related issue, but it is not.
      One commentary coming up!

      Thanks for visiting 🙂


  4. Dot com IPOs, Commodities speculation, CDS and CDO derivative fraud… you can do whatever you like as long as your alumni friends sit in Washington.

    • econotwist

      Personally I don’t know if you’re right or not.
      But, sadly, I’ve become increasingly skeptical (and cynical) over the last years when it comes to both corporate and national governance.

      I’ve also noticed that the level of mistrust among people have increased dramatic during the financial crisis.
      This is a development I watch with genuine fear.

      We need transparency, and a total renovation of our monetary system. The time is running out…

      Thanks for the visit !


  5. Cold Calling. Right Come Let’s just out and admit it, nobody really likes cold calling. It takes patience, determination and perseverance, a tough mentality and be able to find enough people, requires that the company Insurance want to buy from you to do. The beauty of “cold calling” is that it is a numbers game. Everyone legally in the United States have secured their car. The key is to find even if it takes call after call. The story and the testimonies of those who have been showing success with which, with “cold calling” is, in fact, finally, patience pays. So if you’re out of you “sell” new ideas, or simply do not have the money to do anything, good old “cold calling” can help you start your sales.

    • econotwist

      You make an excellent point.
      Good ol’ “Cold Calling” is nothing new, and should have been in the vocabulary of Norwegian traders ages ago.
      Unfortunately, it seems like it’s not.
      I am not surprised.

      I guess I’ll receive about 200 hate mails if I use the word “amateurs”, but the fact is that the Norwegian financial markets are microscopic in a global perspective. Although the industry is among the best in some areas, like oil and shipping, they’re dangerously inexperienced in other areas.

      Okay, I’ll take the angry e-mails now, please!


  6. Good night, Happy Fool’s Day!!!

    “Hello there,” said the vacuum cleaner salesman to the little girl who answered the door. “Would you like to buy a vacuum cleaner? Watch this!” Pushing his way into the house, the salesman proceeded to dump a pile of lint and coffee grounds out onto the shag carpet.
    “If this vacuum doesn’t clean this mess right up,” he boasted with a big smile, “why I’ll eat it right up.”
    At this, the little girl turned and left the room.
    “Where you going, kid?” called the salesman. “To find your mom?”
    “Nope,” answered the little girl from the doorway, “I’m getting a plate and a spoon… ’cause we don’t have any electricity!”

    Happy April Fool’s Day!

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