Tag Archives: goldman sach

The Truth, Some Truth And Something Like The Truth

All top executives at Goldman Sachs have Tuesday made their testimonies before the Senate members of the U.S. Congress – including CEO Lloyd Blankfein. They all did their best to defend themselves against the legislation brought against them. Here’s the full transcripts of all the prepared statements, and video recordings of the U.S politicians questioning of the Goldman-leaders.

“What you perceive, your observations, feelings, interpretations, are all your truth. Your truth is important. Yet it is not The Truth.”

Linda Ellinor


The CEO of Goldman Sachs testily defended his company’s ethics and business practices during the nation’s financial crisis on Tuesday, saying customers who bought securities from the Wall Street giant came looking for risk “and that’s what they got.”

“Unfortunately, the housing market went south very quickly,” Lloyd Blankfein told skeptical senators on an investigatory panel. “So people lost money in it.”

He was the final witness in a daylong hearing on Goldman Sachs’ behavior, which resulted in a government civil fraud charge earlier this month.

Five present and two former Goldman officials held their ground in hours of contentious testimony, unflinchingly defending their conduct and denying that the Wall Street investment bank helped cause the near-meltdown of the nation’s financial system.

Sen. Carl Levin, D-Mich., the panel’s chairman cited a “fundamental conflict” in Goldman’s selling securities and then betting against the same securities — and not telling the buyers.

“They’re buying something from you, and you are betting against it. And you want people to trust you. I wouldn’t trust you,” Levin told Blankfein.

Blankfein denied such a conflict. “We do hundreds of thousands, if not millions of transactions a day, as a market maker,” Blankfein said, noting that behind every transaction there was a buyer and a seller, creating both winners and losers.

Here’s the full prepared testimonial of  Lloyd Blankfein.

The following Goldman executives was called in on the carpet before the Senate in today’s hearing:

LLOYD C. BLANKFEIN

Chairman and Chief Executive Officer

DANIEL L. SPARKS

Former Partner, Head of Mortgages Department

Prepared testimony

JOSHUA S. BIRNBAUM

Former Managing Director, Structured Products Group Trading

Prepared testimony

MICHAEL J. SWENSON

Managing Director, Structured Products Group Trading

Prepared testimony

FABRICE P. TOURRE

Executive Director, Structured Products Group Trading

Prepared testimony

DAVID A. VINIAR

Executive Vice President and Chief Financial Officer

Prepared testimony

CRAIG W. BRODERICK

Chief Risk Officer

Prepared testimony

All testimonies provided by Zero Hedge.


The senators asking questions was: Carl Levin Chairman (D-MI), Thomas R. Carper (D-DE), Mark L. Pryor (D-AR), Claire McCaskill (D-MO), Jon Tester (D-MT), Tom Coburn Ranking Member (R-OK), Susan M. Collins (R-ME), John McCain (R-AZ), John Ensign (R-NV).

“I’ve Been Targeted”

Embattled Goldman Sachs Executive Director Fabrice Tourre who was sued by the SEC for fraud told the Senate subcommittee today that he will defend himself in court against the suit.

I deny — categorically — the SECs allegation, Tourre said at a hearing of the Permanent Subcommittee on Investigations. I will defend myself in court against this false claim, he said, adding that a deal at the center of the suit was not designed to fail.

Tourre, 31, and six other current and former Goldman Sachs employees will testify before lawmakers about the firms mortgage-securities business in the years leading up to the economic collapse of 2009.

Inside Goldman Sachs

Here’s the morning report from ABC News, featuring clips from Lloyd Blankfein’s testimony:

The Essential Background Material:

Fitch: The Long-Term Goldman-Effect
Will The Goldman-Case Kill The OTC Market?
Conquering The Devil
Goldman’s Collateralized, Securitized And Synthesized Fraud
Obama: “It Is Time”
Goldman Sachs Charged With Fraud – Here’s The SEC filing
Two Thirds of Americans Support Stricter Financial Regulations
Living In A Derivative World


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Wall Street: "God's Work"

 The mighty Goldman Sachs-boss Lloyd Blankfein says he’s just a banker “doing God’s work”. On Wall Street the Dow hits new record high for 2009, oil, gold and other commodities are going straight up. Even demand for US Treasuris is greater than ever. The only thing falling is the value of the american currency.

“If the financial system goes down, our business is going down and, trust me, yours and everyone else’s is going down, too.”

 Lloyd Blankfein

(Article in Norwegian)

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– Jeg er bare en vanlig bankmann som gjør Guds verk, sier den mektige Goldman Sachs-sjefen Lloyd Blankfein. På Wall Street går prisen på aksjer og råvarer rett opp, og etterspørselen etter amerikanske statsobligasjoner er større enn på lenge.

  

I forbindelse med et portrettartikkel i The Sunday Times karakteriserer toppsjefen i den myteomspunne Wall Street-kjempen Goldman Sachs, Lloyd Blankfein, seg selv som en vanlig bankmann som bare gjør “Guds verk”.

Flere medier har naturlig nok hengt seg opp i overskriften på artikkelen som går over sju sider på timesonline.co.uk.

Artikkelen gir et uvanlig detaljert bilde av virksomheten i USAs mest lønnsomme bank, og Blankfein kommer med flere, og enda mer urovekkende uttalelser enn overnevnte.

Faller Goldman – faller alle

Han forteller blant annet at den egentlige årsaken til at Goldman byttet status fra investeringsbank til bankholdingsselskap ikke hadde noe med penger å gjøre, men at beslutningen ble tatt fordi markedet hadde mistet tilliten til myndighetenes kontroll med investeringsbankene etter kollapsen i Bear Stearns og Lehman Brothers.

Den 140 år gamle finansinstitusjonen er vel den mest myte- og rykteomspunne banken i verden. (Utenom FED).

Det blir hevdet at Blankfein og Goldman Sachs i samarbeid med den amerikanske sentralbanken har mer makt enn USAs regjering.

Det tradisjonsrike bladet Rolling Stone Magazine beskriver selskapet slik:

“A great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

Det blir også argumentert for at Goldman driver en form for “utpressing” av amerikanske myndigheter slik gruvearbeidernes fagforeninger gjorde I 70-årene.

Dette er Blankfeins reaksjon:

Blankfein has no time for such soft talk. Bankers are not miners. “I’ve got news for you,” he shoots back, eyes narrowing. “If the financial system goes down, our business is going down and, trust me, yours and everyone else’s is going down, too.”

Han har trolig rett.

Les hele artikkelen: Meet Mr. Goldman Sachs her.

Milliarder på nannosekunder

Goldman Sachs er i øyeblikket suverent i forkant av markedet etter store investeringer i teknologi og utvikling av automatiske handelsprogrammer.

I løpet av de siste årene har den såkalte High Frequency Trading vokst fra å utgjøre 30 prosent til å utgjøre 70 prosent av de daglige handelsvolumet på NYSE.

Ved hjelp av superhurtige dataforbindelser kan Goldman Sachs (og kanskje et par andre storbanker) utføre enorme transaksjoner i løpet av et nannosekund 

Ofte finansieres slike block trades av såkalte dark pools der innsyn og offentlighet er meget begrenset.

I et åpent brev til president Barack Obama gir senator Ted Kaufman uttrykk for sterk bekymring over denne aktiviteten.

Ifølge sjefen for en av USAs største “black pools” vil pengene i disse investeringsfondene femdobles fra i år til neste.

Brevet til presidenten er publisert av Huffington Post.

Kjemperally på gang?

Helgens forsikringer fra lederne i G-20 landene om at de ikke skal begynne å redusere de økonomiske stimuleringstiltakene ennå har ut løst et globalt rally så å si alle investeringsklasser. 

Det eneste som faller er dollarkursen.

EUR/USD:

 eurusd.gif

Til og med den amerikanske finansdepartementets auksjon av ytterligere 40 milliarder i treårige statsobligasjoner overår forventningene.

Årlig avkastning (yield) endte på 1,404 prosent, mot forventet 1,419.

Bid-to-cover ratio var 3,33, sammelignet med 2,76 ved forrige auksjon.

Indirekte bydere (indirect bidders), blant annet utenlandske sentralbanker, stod for nærmere 70 prosent av kjøpene.

 3-years-11.9.jpg

Ifølge Bloomberg News har aksjemarkedet i tidligere resesjoner steget 92 prosent i de seks månedene før sentralbanken begynte å sette opp renten igjen.

Så langt er det amerikanske aksjemarkedet rundt lag 60 prosent siden bunnen i mars i år, og har dermed enda noen prosent til å gå på, mener flere analytikere.

Den eneste som fremdeles har hatten på hodet er – som vanlig – Art Cashin:

“What I want to see are better economic reports coming out. The private sector hasn’t kicked in yet for the recovery,”

Art Cashins market comments on CNBC here.

  

Overkjøpt

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Dow Jones-indeksen til ny årsbeste. Men merk at Relative Strength Index viser at markedet nå er overkjøpt og en reaksjon ned kan ventes på kort sikt.

 

 

 

 

 

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