11/20/08

Goldman Sachs considered the shining star of investment banks is faltering bad.

-Forgoes bonuses for top executives
-Analyst are predicting first quarterly loss since going public
-A stock that now trades at $53 which erases more than 10 years of gain

Is this the beginning to end of Goldman Sachs and Investment banking as we know it? Can someone shed some light on this. Goldman faltering this bad disrupts the order of the universe.

What a shitty investment for Warren Buffet. My rationale for Warrens decision was not becuase Goldman was a good buy at the time but was only to in still confidence in the market. It was simply to prevent his other holdings from falling in share price in the event Goldman was not able to rasie capital.

Also is still worth trying to secure a job at Goldman Sachs.

Comments (16)

11/20/08

you write as if all the other banks aren't going to be doing the same, if they haven't already done so.
-goldman was the first to come out saying their top execs won't be getting bonuses. DB and UBS are some of the many others who will follow. it's proving once again that goldman is the trend setter on the street and everyone else around town looks for what Blackfein's going to do.
-their first quarterly loss. who hasn't lost money in he past couple of quarters?

the only question is how much will their conversion to a bank holding company affect them. If I were offered a job at gs, I'd take it on the spot. Who would you rather take it with?

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11/20/08

any restructuring team on the street over any BB..

I'm making it up as I go along.

11/20/08

gogo restructuring! But that only holds true if the bank within which the restructuring group is continues to exist. So let's keep our fingers crossed...

11/20/08

I think many people would still kill for GS

11/20/08

If GS goes down... everyone will go down.

11/20/08

I really don't see why you singled out Goldman. They've fared much better than most bank; this is industry-wide. If GS somehow ends up failing, it will be after the likes of Citi, MS, etc...

11/20/08

It's tough being number one, always getting hated on. Sure, they decided not to pay out bonuses for their top executives... but frankly, that's a whole lot better than laying off 50,000 people. A move like that suggests GS is more interested in sustainability rather than riding the market roller coaster. First quarterly loss? Oh no! If banks collapsed after a loss in a single quarter, there would be a lot of unemployed bankers out there. $53's not a bad number when you compare it to the share price of other banks...

We're going to need some more convincing signs in order for GS to collapse...

11/20/08

i turned down gs in summmer time. it happens more then people think

11/20/08

Wall Street is a strict meritocracy, it thrives on the very concept that 'only the strong survive'. First Boston was dominant in the eighties. They were perched atop the League Tables, fighting of Kuhn Loeb, and Morgan Stanley with a stick. Look what happened to them. I'm not saying Credit Suisse will acquire Goldman Sachs, but on Wall Street, no one entity dominates forever. If Goldman does manage to get through this, they will be vulnerable to lose their seat atop Wall Street. In ten, or even five years, JP Morgan, or Citigroup will replace Goldman Sachs on Wall St.

P.S. Did anyone hear about GM's attempt to make General Motors Acceptance Corporation in a Bank Holding Company?

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Afro Jacks

11/20/08
IveyGuru:

What a shitty investment for Warren Buffet. My rationale for Warrens decision was not becuase Goldman was a good buy at the time but was only to in still confidence in the market. It was simply to prevent his other holdings from falling in share price in the event Goldman was not able to rasie capital.

LOL! You have absolutely no idea what you are talking about.

First of all it is Warren Buffett (not Buffet).

Second, his investment in Goldman Sachs was for $5 billion in perpetual preferred shares which pay him a 10% dividend, with attached warrants that allow him to purchase an additional $5 billion in common stock at $115 per share at any time over the next five years. So even if GS stock doesn't go back up to $115 by 2013, then he is still getting a $500 million dividend check every year.

So please tell me, how is that a shitty investment?

Next time, before you start ripping someone, CHECK YOUR FACTS!

11/20/08

It's only a setback.

11/21/08

I love how you are supposing the healthiest BB will die while Citi is in its last throws. Its stock has declined over 50% in the last week alone. Even if GS is below its IPO stock value it can rebound with a $50 stock price, but Citi is getting raped and soon taxpayers will too.

So what do you do?
-I work for an investment banking firm.
Oh okay; you are like my brother, he works for Edward Jones.
-No, a college degree is required in my profession

Reality hits you hard, bro...

11/21/08

Oh and remember last spring when this got bad and we were talking about BSC we mentioned that the two worst after that were Lehman and Citi- pretty prescient, no?

So what do you do?
-I work for an investment banking firm.
Oh okay; you are like my brother, he works for Edward Jones.
-No, a college degree is required in my profession

Reality hits you hard, bro...

11/21/08

Anyone have any thoughts as to why JPM is getting knocked down this week? Stock's down about 33% in the past few days alone and is getting beat up worse than all the other banks (except for Citi). All because of the 10% cut in the I-bank?

11/21/08

Why do you think? They have the same exposure to consumer credit that Citi has.

11/21/08
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