Patriotism and Profit Taking

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Rob Cox at Breaking Views argues that, okay, sure, Hank Paulson's jump from Goldman to Treasury was motivated by patriotism. But if he liquidates his stock in his old firm he also stands to make a ton of money.

Goldman recently reported mind-blowing profits. The stock, while off its highs, is up 60% in a year and has tripled since Paulson led its IPO. So leaving now with about $500m of stock under his belt seems sensible. That's especially true given the dominance of the trading businesses to Goldman's bottom line. It's only natural that a former client banker like Paulson would now pass the baton to Lloyd Blankfein and his merry traders

Hawking America [Breaking Views]

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