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Goldman-Sach's stock takes a beating…….

While the Dog thinks the guys at Goldman-Sachs dodged the Congressional bullet……

The world of perception is riding them hard…

The leak of the Criminal Investigation has sent the company’s stock steeply down costing holders of that stock a whole lot of value..

Shares of Goldman Sachs Group Inc (GS.N) fell as much as 9.9 percent on Friday to a more than nine-month low, a day after news that U.S. federal prosecutors in New York have begun investigating the company.

HOT STOCKS

The reported criminal investigation also prompted at least two analysts to downgrade their ratings for Goldman. Bank of America Merrill Lynch analyst Guy Moszkowski called the reports “a concern even if no charges ultimately result.”

In addition, the yield spread over Treasuries of Goldman Sachs’ 5.375 percent notes due in 2020 widened to about 201 basis points in heavy volume, from 184 basis points late on Thursday, according to MarketAxess.

The criminal investigation came less than two weeks after Goldman was charged with civil fraud by the U.S. Securities and Exchange Commission. Earlier this week, Goldman Chief Executive Officer Lloyd Blankfein and other executives underwent cross-examination by lawmakers at a U.S. Senate hearing on their role in trading mortgage-related products in 2007.

Goldman, which is now facing one of the biggest crises in its 140-year history, is seeing its shares bear the brunt of the past two weeks’ developments.

Goldman shares were down 9.6 percent at $144.88 in midday trading on the New York Stock Exchange. The shares are now down more than 21 percent since the SEC probe was announced, compared with a 2.8 percent decline in the Amex Securities Broker dealer index .XBD.

“It’s going to keep (Goldman stock) capped in terms of potential upside,” said Walter Todd, a portfolio manager at Greenwood Capital. “You started to see it recover and then something else comes out.

“The door was opened when the SEC announced their fraud charges,” Todd said. “I think you’re going to have things of this nature popping up for the foreseeable future for Goldman, but the criminal investigation obviously escalates it to the next level. … It’s going to be an ongoing overhang for these guys.”

More……..

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April 30, 2010 Posted by | Blogs, Breaking News, Crime, Government, Law, Media, Men, Other Things, PoliticalDog Calls, Politics, The Economy, Updates | , , | 5 Comments

Goldman-Sach’s stock takes a beating…….

While the Dog thinks the guys at Goldman-Sachs dodged the Congressional bullet……

The world of perception is riding them hard…

The leak of the Criminal Investigation has sent the company’s stock steeply down costing holders of that stock a whole lot of value..

Shares of Goldman Sachs Group Inc (GS.N) fell as much as 9.9 percent on Friday to a more than nine-month low, a day after news that U.S. federal prosecutors in New York have begun investigating the company.

HOT STOCKS

The reported criminal investigation also prompted at least two analysts to downgrade their ratings for Goldman. Bank of America Merrill Lynch analyst Guy Moszkowski called the reports “a concern even if no charges ultimately result.”

In addition, the yield spread over Treasuries of Goldman Sachs’ 5.375 percent notes due in 2020 widened to about 201 basis points in heavy volume, from 184 basis points late on Thursday, according to MarketAxess.

The criminal investigation came less than two weeks after Goldman was charged with civil fraud by the U.S. Securities and Exchange Commission. Earlier this week, Goldman Chief Executive Officer Lloyd Blankfein and other executives underwent cross-examination by lawmakers at a U.S. Senate hearing on their role in trading mortgage-related products in 2007.

Goldman, which is now facing one of the biggest crises in its 140-year history, is seeing its shares bear the brunt of the past two weeks’ developments.

Goldman shares were down 9.6 percent at $144.88 in midday trading on the New York Stock Exchange. The shares are now down more than 21 percent since the SEC probe was announced, compared with a 2.8 percent decline in the Amex Securities Broker dealer index .XBD.

“It’s going to keep (Goldman stock) capped in terms of potential upside,” said Walter Todd, a portfolio manager at Greenwood Capital. “You started to see it recover and then something else comes out.

“The door was opened when the SEC announced their fraud charges,” Todd said. “I think you’re going to have things of this nature popping up for the foreseeable future for Goldman, but the criminal investigation obviously escalates it to the next level. … It’s going to be an ongoing overhang for these guys.”

More……..

April 30, 2010 Posted by | Blogs, Breaking News, Crime, Government, Law, Media, Men, Other Things, PoliticalDog Calls, Politics, The Economy, Updates | , , | 5 Comments

Goldman-Sachs Hearing follow-up…….

Here’s The Hills piece on the goings on up on Capital Hill yesterday……

From what I saw of the Hearing…Goldman people gave no ground…….

Executives from Goldman Sachs traveled from the heart of the nation’s financial center for an expected grilling, but ended up frustrating senators by avoiding specific answers about the financial crisis and the bank’s relationship with its investors.

At the center of the storm was Fabrice Tourre, the young Goldman Sachs vice president named in the Securities and Exchange Commission’s fraud complaint against the bank. Tourre, making his public debut on a very large stage, criticized the “unfounded attacks” on his character and motives.

The political theater took place against the backdrop of a fierce debate over financial reform legislation that Republicans blocked from consideration for a second day in a row Tuesday.

Goldman Sachs has been a chief character in that fight ever since the SEC accused it nearly two weeks ago of selling a financial instrument it had designed to fail, an allegation the executives continued to deny  fiercely on Tuesday. Congressional Democrats have suggested their legislation would prevent other banks from doing the same thing.

If the fight over Wall Street reform has been another partisan battle, however, Democrats and Republicans on the Senate Permanent Committee on Investigations appeared unified in their irritations with the executives for dodging questions.

The stalling tactic started immediately after opening statements when former Goldman partner Daniel Sparks took more than 15 minutes to comprehend a question asked by Sen. Carl Levin (D-Mich.), the committee’s chairman.

Levin, who argued in the days leading up to the hearing that Goldman had repeatedly designed and sold mortgage-backed securities that had been designed to fail, referenced an e-mail from Goldman that said the bank was “comfortable” with holding mortgage-related securities that were losing value, and asked Sparks to explain why the bank was at ease with its position.

The former Goldman executive said he did not understand the senator’s question.

Levin then repeated the question several times, reducing it to a hypothetical at one point, but each time Sparks said he did not understand the question.

After nearly 20 minutes, Levin gave up and turned the questioning over to Sen. Susan Collins (Maine), the panel’s ranking Republican, who quickly announced her own frustration, with the witness.

“I’m starting to share the chairman’s frustration and I’ve only used 30 seconds of my time,” Collins said.

Goldman CEO and Chairman Lloyd Blankfein did not appear before the panel until Tuesday evening because of the lengthy proceedings.

He then engaged with Levin in an animated exchange over whether bank representatives had a moral obligation to tell investors when Goldman bet against investments held by investors.

“I don’t think we would have to disclose that,” Blankfein finally said to Levin, who appeared floored by the response.

Earlier, Collins was visibly frustrated when three of the four witnesses on an opening panel from Goldman avoided directly answering her question about whether they believed they had a duty to work on their clients’ behalf.

Goldman’s former managing director, Joshua Birnbaum, said: “Not only do I believe that we do, I believe that we did.”

But the other executives indicated confusion with the question or said their responsibility ended with supplying clients with rudimentary information about the investments.

More……..

Note.….If these Congressmen thought that these money makers of Wall Street where going to roll over….They got their feelings hurt….

These guys are ‘Master’s of the Universe’ and they play hardball every day……

The SEC better have a good case..because these guys are serious about making their fee’s…..

And few rules ain’t gonna even slow them down…..let alone scare them….

April 28, 2010 Posted by | Blogs, Breaking News, Counterpoints, Entertainment, Government, Law, Media, Men, Other Things, PoliticalDog Calls, Politics, The Economy, Updates | , , | 3 Comments

Goldman-Sachs CEO and Chair is a a Hero to Wall Street and the locals……Obama trys to be firm but….nice……

While the media fell over themselves ……winding up for a Obama confrontation with Wall Street……

Things didn’t quite happen that way……..

The president played to a full House and essentially invited the ‘Street’ to not fight upcoming bill in public……

Obama smacks down Wall St. -- then asks CEOs for help

Everyone in the room, and many financial-industry workers who watched the speech on televisions or computer screens in their offices, knew the leaders of Wall Street’s big banks had serious reservations about the financial-regulation package, which would bring new scrutiny, costs and limitations to their businesses.

But after the speech, many expressed their opposition only privately.

“These certainly look like scare tactics to me, a warning that either Wall Street is with the Obama administration or against it,” muttered one senior banker. “No CEO in their right mind is going to come out against whatever the president says, and I think this will play out all behind the scenes in Washington.”

Because Mr. Obama was a guest in Wall Street’s backyard, and because the legislation appears set to pass, his hosts opted to be polite, or not show up. Bank of America Corp. CEO Brian Moynihan was away from New York with “some long-planned other activities” and so could not make it to the speech, a spokesman said. J.P. Morgan Chase & Co. CEO James Dimon, a Democrat who has grown frustrated with Washington, also didn’t attend due to a previous commitment in Chicago.

“I think it was a very forceful speech that laid out the president’s thoughts quite clearly,” said Nasdaq OMX Group Inc. Chief Executive Officer Robert Greifeld. “Hopefully, Congress can work in a meaningful way to push a bill forward.”

White House press secretary Robert Gibbs said the speech was not aimed at Wall Street chief executives, but at a broader audience……

But the entrance of the Goldman-Sach Boss was greeted VERY warmly, also…….

Lloyd Blankfein of Goldman Sachs may be in trouble with the SEC, but he was greeted like a celebrity at Cooper Union – including by several local public officials who made a special effort to introduce themselves, the Daily New’s Erin Einhorn reports.

amd_blankfein.jpg

Blankfein, surrounded by a mob of cameras, waded through the dense crowd toward an area directly in front of the stage where local pols were sitting.

Rep. Carolyn Maloney buttonholed him to thank him for a small business development program Goldman is doing at LaGuardia Community College in her district. “It’s such a wonderful thing you’re trying to do there. It’s going to help employ a lot of people,” she said.

Blankfein answered that it would “help the small businesses but also help support the infrastructure for the college to deliver, so it’s kind of a double whammy.”

“And your intiative for women, also, I think is very helpful,” Maloney answered.

Blankfein was then introduced to City Controller John Liu, telling him: “I’ve seen you on TV!”

More……..

The situation here looks like it plays this way to the Dog…..

There will be a bill….period….

The “Street’ will not oppose the Bill in public…..

But will work quietly with the Democrats and GOP to get what they think they can’t swallow watered down or removed….

And they will keep giving to their favorite politicians (Blanfein is a Democrat ) for this ability to quietly have their feelings listened to in the formation of the bill….

Obama’s speech was window dressing (hyped by the media and WH )…and he was very careful to ask these ‘fat cats’ to join him on the bill…not attack them personally…..

He runs for re-election too soon……..

April 22, 2010 Posted by | Blogs, Breaking News, Counterpoints, Government, Law, Media, Men, Other Things, PoliticalDog Calls, Politics, The Economy, Updates | , , | Leave a comment

The SEC will not be the only problem fro Goldmen-Sachs…..

The  Attorney General’s of New York and Massacuetes have already went to court against the financial giant……

And the line is forming for more legal action……

After discussions with the office of state Attorney General Martha Coakley (D), Goldman last year agreed to pay up to $60 million to end that investigation, the first major settlement involving Wall Street’s role in the subprime mortgage crisis.

“Goldman was particularly active with respect to facilitating the lending by two of the more notorious and unsound subprime lenders — Fremont and New Century,” Coakley said Wednesday. “Goldman was especially active with these companies in the latter stages of the subprime lending boom . . . when it should have been increasingly clear to any responsible person that the subprime loan pools underlying securitizations suffered serious problems.”

Even before the Securities and Exchange Commission sued Goldman last week, accusing it of creating a complex financial product designed to fail and selling it to unknowing investors, the firm had been a frequent target of investigators. In courts and in Congress, Goldman has been accused of a range of misdeeds, from manipulating oil prices to using taxpayer money for handsome bonuses.

The company has maintained that it did nothing improper in any of those cases, and in the Massachusetts settlement it admitted to no wrongdoing. Yet, to many Goldman critics, the SEC lawsuit underscores their worst image of the bank as a cold firm that places its profit before anything else — client interests, customer needs and its obligation to society as a leading American corporation.

Also…..

In 2008, Goldman agreed to pay tens of millions of dollars to settle allegations by the New York state attorney general, who argued that it misled investors about the safety of an instrument known as an auction-rate security. Late last year, several pension funds filed lawsuits charging the company’s directors with breach of duty in connection with outsize executive paydays; Goldman has said the suit lacks merit.

More……..

April 21, 2010 Posted by | Blogs, Breaking News, Counterpoints, Government, Law, Media, PoliticalDog Calls, Updates | , , | Leave a comment

Wall Sreet and Talking out of both sides of your mouth……

I wrote about Obama and bashing Wall Street while having his fundraising hand out…..

This from Jerome Armstrong over @ MyDD.Com

Daniel this one’s for you and TPL……

How much money has Obama taken from Goldman Sachs? Should he return it?

Bonus current thematic follow-up: What level of the dimensional chess is the move by Goldman Sachs to hire Obama‘s former personal White House counsel during the first year of his presidency?

My my, what the revolving doors lead to nowadays.

More……..…..and Comments (the real interesting part! )

April 20, 2010 Posted by | Blogs, Counterpoints, Daniel G @ PolitcalDog, Government, Media, Men, Other Things, PoliticalDog Calls, Politics, Updates | , , , , , | Leave a comment

Goldman-Sachs Is Charged With Subprime Fraud……

The Securities and Exchange Commission has gone after the giant financial services company and one of it’s Vice President’s civilly……

They are charging that the company and  VP Fabrice Tourre ….. sold collateralized-debt obligations, or CDOs pegged to sub-prime loans to investors while failing to disclose that a major hedge-fund client had a role in picking the securities and was betting against them…….

In other works……some client of theirs picked bad credit loans..told them to sell them to people..while they, the originator of the loans, actually bet that they would probably fail..and didn’t tell the buyer this…….

Goldman-Sachs who is supposed to state any and all risk know to them…..made money on the fee’s…probabaly on both ends…..

The Securities and Exchange Commission on Friday charged Goldman Sachs GroupInc. with defrauding investors, alleging that Goldman let a big hedge fund fill a financial product with risky subprime mortgages and then failed to disclose that to the product’s buyers.

The SEC said in the civil complaint that Goldman and Fabrice Tourre, then vice president, created and sold opaque collateralized-debt obligations, or CDOs, that hinged on the performance of subprime-mortgage-backed securities. The complaint charges that Goldman promoted these securities to customers while failing to disclose that a major hedge-fund client had a role in picking the securities and was betting against them.

Goldman Sachs, which in a statement called the accusations “completely unfounded in law and fact,” could face steep fines and be on the hook to repay nearly $1 billion of investor losses. The charges mark the first action regulators have taken against a Wall Street firm for betting on the housing market’s collapse, and represents another blow to an investment bank under attack for how it handled the financial crisis.

The hedge fund, Paulson &Co., paid Goldman $15 million to create the CDO in early 2007, when the U.S. housing market and related securities were beginning to show signs of distress, the SEC complaint said.

According to the SEC, Goldman Sachs failed to disclose that Paulson played a significant role in selecting the CDO’s portfolio, but the firm then bet against it by entering into a credit-default-swap transaction with Goldman to buy protection on certain layers.

As a result of that bet, Paulson made about $1 billion, SEC said.

“Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party,” said Robert Khuzami, Director of the SEC’s Division of Enforcement.

Shares of Goldman plunged 11% in early-afternoon trading.

More

April 16, 2010 Posted by | Blogs, Breaking News, Government, Law, Media, Men, Other Things, PoliticalDog Calls, Politics, The Economy, Updates | , , , , | Leave a comment