Goldman Sachs

  • 18 Sep 2013 at 3:20 PM
  • Banks

Lloyd Blankfein Tickled Pink Over Joining The Dow

Lloyd Blankfein may have a direct line to the guy up top, but even He didn’t tip the Goldman chief about the nicest surprise of his banking career. Read more »

  • 17 Sep 2013 at 5:45 PM
  • Banks

Nothing To See Here: Capital Ratios Edition

Everything is A-OK and fine and dandy with the banks, which say they’d sail through hypothetical financial crises of their own devising. Read more »

Sure, we’ve heard it before, but this time 31 of 47 people who bothered to answer their phone/e-mail are pretty sure that next week’s Fed meeting will be the Fed meeting we’ve all been waiting and waiting and waiting for. Read more »

Sayeth Chaz: Read more »

  • 22 Aug 2013 at 10:53 AM

Banks In Trouble For Losing Money And Getting In Trouble

Half of today’s financial news stories are about how some government enforcement agency is looking into something you already knew about. This is very boring for me! Remember when Goldman lost a bunch of money by fat-fingering some options trades?1 That still happened. Remember how JPMorgan did some naughty things with California electricity markets? Those historical circumstances continue to obtain. Remember the Whale? Still a thing.

You could wonder about the substance of some of these investigations. JPMorgan’s electric boogaloo, while intensely naughty, also seems pretty clearly to have followed FERC/ISO rules to the letter, so it’s hard to imagine charging anyone with a crime, as the FBI is apparently contemplating.2 And while I don’t know much about the SEC rules re: electronic options trading, the actual thing that Goldman did was sell options really cheaply, and it would be pretty weird if there were a rule against that, so I don’t know where the SEC is going with its enforcement investigation.3 (The Whale, I’ll give you, that stuff seems bad.) But basically, yeah, sure: bad things happened, rules might have been violated, market safeguards were shown to be less robust than had previously been thought, it is altogether fitting and proper that someone look into it. Or a lot of someones I guess.

Still the stories carry a whiff of looking for the keys under the lamppost: Read more »

Yesterday the computer at Goldman Sachs responsible for trading options whose symbols start with the letters H through L traded a bunch of options at the wrong prices and put Goldman out by a hundred million dollars or so. Today various exchanges are sitting down and pondering whether to give Goldman that money back. This strikes some people as unfair because, y’know, hahaha Goldman you screwed up, but also because someone was on the other side of those trades, made a profit, hedged it out, and will now be sad and possibly screwed when it is unwound.1

Which all seems pretty justified, and the image of a bunch of exchange operators getting together and being all “better cancel these trades, it’s Goldman, don’t want to make them mad” is in fact disturbing. However! That is not apparently what is happening. From Bloomberg: Read more »

Michael Penn has vowed to stay put until someone makes him an offer. Read more »