Roddy Boyd:
[On the morning of Tuesday, March 11], Goldman Sachs’s credit derivatives group sent its hedge fund clients an e-mail announcing another blow. In previous weeks, banks such as Goldman had done a brisk business (for a handsome fee, of course) agreeing to stand in for institutions nervous, say, that Bear wouldn’t be able to cough up its obligations on an interest rate swap. But on March 11, Goldman told clients it would no longer step in for them on Bear derivatives deals. (A Goldman spokesman asserts that the e-mail was not a categorical refusal.)
“I was astounded when I got the [Goldman] e-mail,” says Kyle Bass of Hayman Capital. He had a colleague call Goldman to see if it was a mistake. “It wasn’t,” says Bass, who is a former Bear salesman. “Goldman told Wall Street that they were done with Bear, that there was [effectively] too much risk. That was the end for them”…
When word of the Goldman e-mail leaked out, the floodgates opened. Hedge funds and other clients, eventually running into the hundreds, began yanking their funds.
Blodget:
Should Goldman be blamed for this? Absolutely not. Bear Stearns was under-capitalized, over-leveraged, and stuffed to the gills with crappy debt. Once again, Goldman seems to have outsmarted the rest of Wall Street, spotting a problem before everyone else did.
That’s the real take-away from this lil’ BSC crisis– how smart Goldman Sachs is. So smart, so pretty, so Goldman Sachs Sachs Sachy. Goldnutsacks’alicious. In fact, I’ve written to the powers that be at the OED and asked that they add an entry in honor of my favorite bank. Something like this:
Sachy (adj):
1. Delicious, entirely superior, beyond reproach.
2. Without peer (especially in the context of total superiority)
3. Omnipotent
Ex: The way Freddy executed that trade then fade after disseminating false information about a potential takeover of Luby’s was positively sachy.
Etm. From the modern, Goldman Sachs (superior financial institution)
Syn: Superior, Unique, Peerless, Orgasmic
Ant: Thinkequityesque
Wall Street Shocker: Goldman Sachs Destroyed Bear Stearns! [Silicon Alley Insider]
Well the real bleeding started one day before the GS email. And the previous week rumors were spreading from Europe. Splain that.
I think Lou Dobbs scared GS; made ‘em nervous you know. Caused GS to “turtle head-in” on risk. So ends the lesson.
Each morning when I exit the M train after leaving my sad, sad life in Bay Ridge across the river, I hurriedly clutch my black bodega bag and pinch my nose to escape the fumes of prestige leaking from 85 Broad. It’s been known to cause sinus infections amongst us poors…
-rather be shining Lloyd’s shoes, grossing 70K.
I wonder if Kyle B. is going to cream his pants he was quoted on Dealbreaker. Subprime has been good to him.
didn’t one of the earlier posters suggest that goldensacks could have gone in and saved big daddy cayne? I guess this puts that nonsense to bed! whether they are smart or just lucky, they seem to get it right more often than not. but then again, a broken clock is correct 2 times a day…
Atm. ThinkEquityesque
Hahahaha.
Looks like God, Goldman Sachs’ co-pilot, was with them on this one.
Rule No. 1: Never put your firm in a position where a rival can kill it in just one day.
Rule No. 2: Never pee uphill while barefooted.
Rule No. 3: Never make fun of the ugliest girl on the tradefloor because a managing partner is probably banging her.
Rule No. 4: “Hope” in one hand and shit in the other. See which one “comes true” first.
Screw GS
I think Citigroupish is a better antonym than ThinkEquityesque.
not to point out the obvious, but wouldn’t Bear-Stearnsish or “Bearish” be the proper antonym?
Also, “bear stearned” is on urban dictionary already (for like 2+ weeks)
@anal_yst– you’ve clearly never heard of Think Equity.
@ 4:54, besides seeing their “analysts” on CNBC occassionaly, that is correct.
Care to enlighten me?
alt. antonym: merrillicious