Goldman Going Down

As I have mentioned before, I am the sort of guy who roots for the bad guys in the movies.

But even I have my standards.

With their latest stunt, the Blankfiends are reaching a level of grime even I can't throw my lock picking kit behind.

On the bright side, somebody in Goldman's PR department has been watching NSFW, either that or the sheeple are finally waking to the bucket shop standards practiced over at Lloyd's of Wall Street.

For those who haven't heard, Facebook shares will no longer be for sale... to American clients.

The ungrateful Americans apparently have not done enough for Goldman Sachs.

After bailing them out and watching them make out like bandits over the wholesale economic flushing down the toilet of roughly ~97% of the U.S. public, we actually had the nerve to speak up...and now it's our very own rich folks who are paying the price.

No Facebook for you, rich, lazy American capitalist!

After all, not enough of American products and companies are owned by foreign interests. Let alone our legislative and executive branches.

As I have said before, I am not a big fan of Facebook or their shares...but my personal feelings/opinions have little to do with this particular issue...which is a freaking joke.

It seems that Goldman really has become invincible and that with enough distance between them and 2008 they are starting back up with pimp slapping the SEC in broad daylight.

Barely a few hours after the Goldman's wealthy American clientele had the "rug pulled out from under them", the earnings reports came in.

Goldman's profits fell 52% in the 4th quarter.

Obviously, this wasn't due to the Facebook fiasco. That comes in Q1.

A market making revenue freefall of 43%, combined with a 10% in investment banking saw to the drop quite nicely on their own.

The telling signal that things are staying the same the more they supposedly change is Goldman's 50% revenue rise in other principal transactions ...cue the cheesy grins and throw on your Dick Fuld mask.

What I'm curious about is where exactly do we draw the moral line in our chase for profits? I think Goldman's crossed it a while ago, regardless of the exact location.

I am sure plenty a gilded monkey can rationalize his way out of the accusations I've lodged as if holding scissors in a wet paper bag...but it really can't change facts.

I am just wondering how much longer the Goldman con game can continue and what it will take to finally blow it up?

It's clear we've learned a big fat 0 from Lehman.

My question for all you Goldman guys and wannabees is,
are you really ready to take the fall for Lloyd once the pain comes?

 

They yanked the offering from American investors because they're worried about regulators cracking down, not because they wanted to screw anybody over. And Facebook is far from being "owned by foreign interests" - the deal was for 5% of the company, and their (predominantly American) employees still own most of it.

I'm not a huge Goldman fan but you're just grasping at straws now.

One of those lights, slightly brighter than the rest, will be my wingtip passing over.
 
2x2Matrix:
They yanked the offering from American investors because they're worried about regulators cracking down, not because they wanted to screw anybody over. And Facebook is far from being "owned by foreign interests" - the deal was for 5% of the company, and their (predominantly American) employees still own most of it.

I'm not a huge Goldman fan but you're just grasping at straws now.

It's 5% if you use the out-dated valuation. If Goldman, along with DTS (keep in mind a Russian firm), invested $500 million and we use the current valuation of $50 billion then that's only 1%. So 1% is being exclusively sold to foreign investors, while foreign users account for 70% of Facebook's volume.

Yeah, it sucks that American investors were called up and told that they could purchase shares only to then be told that they couldn't, who wouldn't be at least a little pissed? Let's keep in mind though that unless this really ruined Goldman's relationship with Facebook's upper management (which obviously doesn't seem to be the case) then they'll most likely still handle the inevitable IPO and these would-be investors will have their day. Once again, it's rough to have to wait that long after you feel like you were cheated, but they're still going to make out in the long run, if Facebook lives up to the hype that is.

 
  1. Goldman will be the cause of their own demise if they keep up their shady practices. Clients will evantually leave (as many have and gone to other banks).

  2. They might just be selling FB to foreign investors due to the CDO they are cooking up to blow up facebook in their faces.

"The higher up the mountain, the more treacherous the path" -Frank Underwood
 
Best Response

Midas,

No, I would never consider taking the fall for the Dark Lord of Goldman. Just not my style.

As to Goldman itself, as barboon said, they will be their own demise. It's pretty straight forward in that there is enough ill will directed towards the bank, particularly when you look at the facebook debacle, how much their Prop Trading, or whatever the hell it's called nowadays, revenue accounts for their business or their mythical perfect quarters, now being funded by our Tax Dollars. At the end of the day, Goldman will still be Goldman, and as long as they are well connected, they will use their clout and influence to get what they want.

The Facebook thing might be a bit more complex, however. The fact is, they did break US Law in publishing that they were doing this (which they should have done after they completed the deal). That, in the eyes of the regulators, is an instant solicitation, even though it's not. If they accepted money from US Clients, it would have opened up the grounds for an SEC Lawsuit. I'm sure there are ways around this, but that is another discussion.

 

I've always wondered why people dislike Wall Street and I'm beginning to think I understand why. If you look at it from an outside perspective all WS banks/firms/hfs are doing is making money off of the American people. WallStreet isn't creating anything it's taking from what others have created.

 

Investors were told to shut their mouth. Someone talked and leaked a prospectus. The SEC started complaining because of all the press and hoopla. Goldman said F this and went overseas.

Lesson of the day? Shut your fucking mouth!

 

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