That’s what happens when you leverage your Goldman stock to buy “alternative investments.” Now your Goldman stock is down 60%+ in two years, the hedge funds you bought have taken a similar bath, you are facing margin calls of “tens of millions in some cases,” and Muffie Benson-Perella won’t return your calls.
The situation is liquid, even if your limited partnership interests are not.
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
I believe the answer to all of our queries is in the deepest recesses of Ms. Bartiromo’s anal cavity.
D. Rantagain.
THIS was Charlie going for the jugular.
What’s the market on Charlie being found floating in the East River after a “night out” at Elaine’s?
ha ha
after 1Q earnings, their margins will be very much in the $$$…buy, buy, buy!!
It’s the dumbest move an IBer can make.GS were well known for dumping their stock ASAP, as anyone should.You’ve earned it, so monetize the sucker.
This type of ploy damned near wiped out the senior execs at Brascan, Hees and the Edper Group in Toronto.
@2 currently odds at 5:1. Gasbag is totally going on a vendetta. Only a matter of time before he makes something up and gets nailed.
I miss Muffie. I want those soft, silky, fingers to sooth the harder turgid part.
GS to Zero
Does Gasparino really wanna go down this path? Why is he throwing spitballs at the 800lb gorrilla?
Maybe Winkelreid is one of the insolvent partners now that pay is capped?
double post = dealbreaker virgin
Didn’t even have to look at the source to tell it was a CNBC story.
If the poors had margin calls…
“Today, I will announce the Margin Call Relief Act of 2009. We are all paying the price for margin calls in America today. This is not to reward irresponsible investors, but rather, our children’s future…and healthcare. Yes I realize that last line made no sense but you all applauded anyway. God bless you, and God bless the United States of America.”
……and we gave these idiots billions in TARP funds?
Oh, wait, now they have money to lend to themselves to save themselves from themself.
It is all clear now……
When does Muffie return from her sabbatical in Argentina? She doesn’t keep in touch with you ladies anymore? What gives? Is she still dating Brock? I don’t understand.
-Confused and Lonely
@5 the who who and where?
@ One would think that in the interest of diversification you’d want to sell your GS stock as it vests. However, I’d assume the culture is one where if you’re selling your stock you’re perceived to not be a team player who is fully committed to the firm. Especially at the “partner” level.
This is the best Gasbag can do? Weakest vendetta ever.
Muffie – broke that bitch’s heart good when she walked in on me and bess doing it the current recession way – deep & long
what a shame…
of course GS waiting until after that banker panel down in DC to disclose this. this is crazy…
Muffie returns my calls
Are they going to put their seats on the exchange up for sale as well as seize all their personal holdings?
Let’s imagine that Charlie has got this one right. Not really a great stretch to believe it. One does not promulgate such information without being at least reasonably sure (and therefore libel/defamation -proof)that its true.
If true, it could be a very fast move to 5,000.
@15 We Are The Ones We’ve Been Waiting For
@25 or anyone – why is this a story other than Schadenfreude and letting Charlie embarrass Goldman?
A few MD’s from Goldman have margin calls and the bank is trying to get them loans? Why is that a negative for the market?
This story isn’t about how Goldman is pulling financing for hedge funds requiring them to de-lever.
If anything this means Goldman and its partners are planning to wait out the bear market and eventually cover these positions for big gains.
Remember, at least thus far, Goldman partners win in the end.
17….they were part of the Bronfman conglomerates.You may know them as Trizec and later as Brookfield Properties.They swung bigger dicks than the Reichmman family.
@28 they must be celebrities where you come from but not in London.
@27
You said:
“A few MD’s from Goldman have margin calls and the bank is trying to get them loans? Why is that a negative for the market?”
I’m not sure it’s negative for the market, but, this is starting to smell like Worldcom. No loans or you guys are going to start looking like Bernie Ebbers.
29…sure asshole.As if NY real estate doesn’t know Brookfield.
Go back to looking for a decent dentist,Jools.
@27
What is the size of the margin calls you refer to? Are they so underwater they can’t repay the loan through the sale of the position?
And are we now in the position where a MD at GS is not creditworthy, and thus has trouble obtaining temporary financing for exchange traded positions?
Are you beginning to see how this could be nothing but negative for the market?
Is Goldman a big player or a marginal player? Are their MD reputed to be the best and the brightest? Are they now on their ass in their personal accounts?
What would you then believe about their firm-related investments. If CG is right, the problem will be larger than GS.
@31
you go play with your girlfriends and circle of imaginary bsd’s – then i go back to what i do – killing it. Bitch.
I smell bullshit. seriously? The partners couldn’t have been that stupid.
This is the same story that has been around for awhile about Bear and Lehman execs who held their stock, not wanting to sell for whatever reason though internal pressure to keep it was very high,and borrowed against said stock. Caught in the double whammy of investment and collateral plummeting, they’re getting squeezed on margin and/or contribution calls. Just because a few greedy and foolish souls did this doesn’t mean everyone did. In fact very few actually have it seems. Hardly a cause for the market to plummet.
Since most Goldman officers’ stock had vested, its price has decreased by about 2/3; as capital losses can’t be deducted from earned income, these guys have tax liabilities that they can’t pay; expect IRS to confiscate some officers’ houses.
@32, no. They got margin loans to borrow against their restricted stock to buy private equity, hedge funds, etc. Stock declines 50% or so, firm issues a margin call, PMD can’t meet the call since either the hedge fund(s) he’s in declined a bunch, put up gates or a combo of the two.
@37
Agreed. It still makes the MD’s at GS look like they just fell off the turnip truck when they make such an amateur although widespread mistake. The GS stock is surely not out of the woods at this level, and could easily halve from here in a period of extreme market stress.
If that were to occur, now you have MD’s at GS filing bankruptcy. Not prudent.
If GS has admitted that there is one or two of their guys effected, you can be sure the real number is a multiple of that.
only about 1/4 of MDs are PMDs…
CGas is Wall Street untoucheable like the Gambino in its turf.
Anyone who challenges CGas will live in vain…hmm..
He’s got so many reliable sources…you’ll never win….hmmm!
Young Chuck moved to Texas and bought a donkey from a farmer for $100.00.
The farmer agreed to deliver the donkey the next day.
The next day he drove up and said, ‘Sorry son, but I have some bad news, the donkey died.’
Chuck replied, ‘Well, then just give me my money back.’
The farmer said, ‘Can’t do that. I went and spent it already.’
Chuck said, ‘OK, then, just bring me the dead donkey.’
The farmer asked, ‘What ya gonna do with him?
Chuck said, ‘I’m going to raffle him off.’
The farmer said ‘You can’t raffle off a dead donkey!’
Chuck said, ‘Sure I can Watch me. I just won’t tell anybody he’s dead.’
A month later, the farmer met up with Chuck and asked, ‘What happened with that dead donkey?’
Chuck said, ‘I raffled him off. I sold 500 tickets at two dollars apiece and made a profit of $898.00.’
The farmer said, ‘Didn’t anyone complain?’
Chuck said, ‘Just the guy who won. So I gave him his two dollars back.’
Chuck now works for Goldman Sachs.