Goldman Sachs

Which seems fair? Read more »

Over drinks!

In testimony Wednesday, Paolo Pellegrini, the former Paulson & Co managing director, said he made clear to ACA Capital Holdings Inc that Paulson wanted to bet against the deal.

“As I told all collateral selection agents, we were interested in shorting a CDO, shorting subprime securities in a CDO,” said Pellegrini, one of the architects of hedge fund manager John Paulson’s bet against subprime mortgages in 2006 and 2007. …

Pellegrini, one of two people who worked on Paulson’s strategy to take the stand so far, testified Wednesday he believed he told the principal employee at ACA working on Abacus, Laura Schwartz, about Paulson’s strategy over drinks during a “shindig” for people in the CDO industry.

“I think there was some discussion of the portfolio and what we were trying to accomplish by shorting the market,” he said.

That’ll liven up the murderous boredom of the Fabrice Tourre trial! Read more »

Harvey Schwartz, Goldman’s CFO, said the firm is suddenly experiencing some “recruiting tailwinds”, with more people wanting to work there…At the same time, Schwartz said Goldman’s staff are still very much in demand to work elsewhere, claiming that “Goldman Sachs people are always in high demand and our competitors are always looking to take them over to their firms.” [eFinancial]

The firm probably employs at least a handful of people who drink themselves into oblivion multiple nights a week as a coping mechanism for dealing with professional unhappiness but the unidentified male who knocked back a few too many last Friday night, took a stroll through the West Village, chatted up a young lady outside Benny’s Burritos, stumbled into some outdoor tables, and reportedly acted like a racist prick toward the person offering him help before getting himself knocked out apparently isn’t one of them. Read more »

Fabulous Fab Tourre is on his way to trial in the SEC’s securities-fraud lawsuit over the Abacus synthetic CDO he built at Goldman Sachs for John Paulson, and Andrew Ross Sorkin has a column today about all the things that the SEC doesn’t want him to be allowed to say to the jury. You should read it, it’s enraging, though who you get enraged at is entirely up to you.1 But I’ll give you a quick and tendentious summary, which is:

  • The SEC’s main argument is that Fab deceived ACA, the “portfolio selection agent” on the Abacus deal, and
  • ACA were sort of stupid scumbags, and
  • the SEC understandably doesn’t want the jury to find that out.

Right? The SEC’s suit accuses Tourre of two things: Read more »

SAC Capital is under intense scrutiny from the government over alleged insider-trading violations, but at least one Wall Street firm with a track record of getting things right appears to be betting that the big hedge fund will ultimately survive. Goldman Sachs recently lured away from arch rival Morgan Stanley a veteran stock salesman who counts as his biggest client SAC Capital. The salesman, Jack Johnston, was offered a lucrative managing director position at the prestigious Wall Street firm — a promotion from his previous job as an executive director at Morgan…“Goldman is obviously betting that whatever happens in the investigation, SAC and Cohen will make it,” said one Wall Street trader who has first-hand knowledge of Johnston’s hiring. “There’s no way that Goldman would offer someone whose biggest client is SAC a managing director spot if it thought SAC was going away.” [FBN]

This is a not a phrase that you see a lot in the M&A context:

We want to thank Goldman Sachs for their interest in acquiring Ebix and we are naturally disappointed that we could not complete a transaction at this time.

Thanks guys! Really enjoyed getting to know you but it just didn’t work out. Because of the fraud.

Maybe? This Ebix situation is pretty weird. Ebix is a $400mm market-cap company ($800mm yesterday!) that makes, I don’t know, insurance software, or software insurance, or something. Also it may or may not be committing massive accounting fraud. In July 2011, a bunch of people sued it, either because it was committing massive accounting fraud or because they’re manipulative short sellers or just because of a big misunderstanding. The jury is still out,1 though the SEC is looking into it, so maybe there’s something to it?2 Read more »