Charlie Gasparino’s Gut Tells Him Trouble Is Brewing At Goldman Sachs, Though In Fairness That Could Just Be Last Night’s ChineseBy Bess Levin
Goldman Sachs has said it would move much of its European business out of London if Britain leaves the European Union. The warning from the world’s most powerful investment bank comes as political pressure for Britain to leave the EU mounts. David Cameron has committed to holding a referendum on Britain’s membership if the Conservatives win the next election and some Tory MPs have been agitating for an early vote on the matter. Michael Sherwood, co-chief executive of Goldman Sachs International, said: “In all likelihood we would transfer a substantial part of our European business from London to a eurozone location – the most obvious contenders being Paris and Frankfurt.” [Guardian via Heidi Moore]
First, put all of your money into S&P index funds and short bets against the Australian dollar. Guaranteed* 13% return.
As Luck Would Have It, Goldman Sachs Didn’t Actually Lose $1 Billion On Currency Bets Last Month: Goldman SachsBy Jon Shazar
Or, at least, if it did, the Reuters-reported loss did not take into account “many of the firm’s market-making and client facilitation strategies” which “utilize financial instruments across various product types,” and therefore is “not representative of the way in which the firm manages its business activities.” Read more »
Plus a subsidiary of State Street, which apparently had gotten a pass for too long. Read more »
The Wall Street firm named 280 new managing directors Wednesday, just a 5 percent increase from the previous year, when 266 were picked for promotion. Hundreds of mid-level bankers who missed the cut will now have to wait another two years until 2015 because this is the last annual set of managing director promotions. The change to biennial promotions comes as Goldman has been paring its staff and partnership ranks in the aftermath of the financial crisis that pushed even the storied franchise to the brink. While Goldman was expected to promote more employees than in years past to help compensate for the beginning of its biennial process, this year’s crop of newly minted MDs is a far cry from double. Those who got the promotion — one step below the elite partnership ranks — will command millions more than their midlevel colleagues over the next few years. [NYP, earlier]