It’s just not fair! Read more »
Charlie Gasparino: Gary Cohn Sick Of Watching Lloyd Blankfein Appear On A-1 Of The WSJ, While He’s Relegated To A Sidebar On Page 12 Of This Month’s Cat FancyBy Bess Levin
We talked last week about how shareholders are really the last people you’d want running a bank, if you’re the sort of person who doesn’t like banks. Conveniently Jesse Eisinger is that sort of person, and he’s pissed at shareholders for how they’re running banks:
Shareholders can’t be counted on.
That’s the message from the dispiriting shareholder vote on whether to leave Jamie Dimon as both the chief executive and the chairman of JPMorgan Chase, or to split the roles. Even more shareholders backed him in his dual role this year than did last year.
For some time, reformers have hoped that shareholders might ride to the rescue to solve the problem of Bank Gigantism, otherwise known as Too Big to Fail.
Big-bank critics, like the freethinking analyst Mike Mayo, analysts at Wells Fargo, and Sheila Bair, the former head of the Federal Deposit Insurance Corporation — and others, including me — have raised the possibility that shareholders might revolt over banks’ depressed stock valuations and seek breakups. Broken-up banks would be smaller and safer.
No, it’s not going to happen. Shareholders are part of the problem, not the solution.
The problem in this telling is basically the limited liability corporation, which gives shareholders an option on the corporation’s assets; option pricing theory, which informs shareholders that volatility – of earnings, of “high-risk, high-return bets” where shareholders “capture the unlimited upside and their losses are capped” – increases the value of their option; and modern corporate governance, which informs bankers that they work for the shareholders and therefore should be maximizing the value of that option. With the bets and so forth. Read more »
Lloyd Blankfein Explains How, In Their Own Little Way, Commodities Are The Gay People Of Asset ClassesBy Bess Levin
Attending Harvard, surrounded by classmates with trust funds and blue blood, who had no idea what it was like to grow up in the projects. His years with those same WASPs, many of whom had probably never met a Jew. The period in which there was a lot more Lloyd to love, which coincided with the ‘You can never be too rich or too thin’ era. All experiences that likely made Lloyd Blankfein acutely aware of the fact that he was different, and maybe made him feel like a little bit of an outsider.
None of them, however, can compare to the most ostracizing experience of his life: working as a young commodities trader in an investment bank. Some might say it was the equivalent of being gay in a world that is yet to fully accept homosexuality. Read more »
Lloyd Blankfein Says You Can Look At His Beard But You Can’t–Oh The Hell With It, You Can Touch It Too!By Bess Levin
Lloyd C. Blankfein nuzzled his beard against the cheeks of two ladies last night, Dina Powell, Goldman Sachs’s head of corporate engagement, and Liz Robbins, a Democratic lobbyist. “I was proving to women everywhere that it’s really soft, not coarse,” said Blankfein, 58, chief executive officer of Goldman Sachs, the fifth-biggest U.S. bank by assets. At the nightclub Hudson Terrace, Blankfein was attending the first big fundraiser for Team Rubicon, a Los Angeles-based nonprofit founded three years ago to deploy military veterans to respond to disasters. [Bloomberg]
Recent public remarks by Blankfein that he will stay at his job “for awhile” stung both Cohn and [vice-chairman Michael] Evans, who would like him out sooner so they can have their chance at the top, these people add. Cohn recently told FOX Business he’s content in his current role, and Evans has kept a low profile in recent months as both Blankfein and Cohn have been reaching out to the press. The charm offensive is designed to reverse years of bad publicity concerning Goldman’s role in the 2008 financial crisis and charges that the firm had taken advantage of clients during this time. But Blankfein’s comments touched off even more jockeying between the two men to gain support among the firm’s powerful ranks of “partners”, or senior executives, to emerge as Blankfein’s eventual replacement, these people say. One person close to Goldman said Evans was particularly shaken by Blankfein’s statements, and as a result he might be considering his options outside the firm if Blankfein signals he will stay at the top indefinitely. [FBN, earlier]
Your Lloyd Will Never Leave You (To Perform Revolutionary War Reenactments Or Take A Macramé-ing Hobby To The Next Level)By Bess Levin
“Could you imagine giving up all this? Of course not. The combination of this being who I am and what I do and having absolutely no other interests makes me think I want to be doing this for a while,” Blankfein, 58, told Stephanie Ruhle on Bloomberg Television today from the sidelines of Goldman Sachs’s technology conference in San Francisco. [Bloomberg]
[via Ryan McCarthy]
Presumably the new scruff is being sported simply in an effort to stay warm in Switzerland but dare we say it should become a permanent thing? As you can see here it does nothing to obscure The Lloyd Face and in fact enriches it somehow?