Blankfein Sees Red

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Hoping to capitalize on Russia's "huge potential," Goldman Sachs announced (for the second time) that it will add 25 bankers to its Moscow office, bringing their total to about 100 by the end of the year. Why didn't Goldman move in for the kill (particularly in the commodities sector) sooner? Oh, some legal stuff. A question as to whether or not corruption would "mesh" per se with the GS aethestic. Things like that.
"There are a lot of things to do' in terms of getting rid of corruption in some parts of the economy and creating legal certainty," Alexander Dibelius, who oversees Goldman's business in central and eastern Europe told Bloomberg. But that doens't mean "we should limit our presence here, it just tells us that we have to be conscious about what business we can do and what business we can't do...And I could definitely see over the near term our Russian business overall going to an interesting triple-digit million- dollar figure in terms of revenues,'' Dibelius noted.
Right now Goldman is fighting with Deutsche Bank AG and Barclays Plc in a "tremendous war for talents." GS managing directors dealing with corporate mergers and stock/bond sales in Russia are earning $7 million plus a year, versus the 2-3 million that guys (and girls) doing the same work in New York are making. Compensation rose 25% for bankers last year in Russia, on account of a 5-year oil boom, a record number of IPOs, and Russia’s place as the fastest growing major European economy.
In other news, the Dr. Omar bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC), inaugurated the new office of Goldman Sachs at the DIFC, opened on account of Dubai's great public schools.
Earlier: Commie Schadenfreude
Goldman Expands Moscow Office to Tap `Huge Potential' [Bloomberg]
Goldman Sachs opens office in DIFC [Gulf News]

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