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Looks like the bank losses are stopping Goldman Sachs post $1.8bn 1st 1/4 profit.

1356

Comments

  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    At some point shares and property will put on some healthy fat, and the only way to participate is to hold those assets. I can't get my head around the notion we should all sit this out until a big green light illuminates.

    Surely it's wise to take some positions now and wait.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Conrad wrote: »

    Surely it's wise to take some positions now and wait.

    Correct conrad, if you never make a decision on the chance of it being wrong (and that you could not handle being wrong). You will never make a decision.

    I put my flag up 8 months ago now. It as got to be very near now to be able to buying at below bottom prices.:confused:
  • GucciMane
    GucciMane Posts: 348 Forumite
    chucky wrote: »
    where did they do this - do you have a link to it?

    Quote from CNBC.com:

    "The firm also switched its reporting cycle so its fiscal quarters were in line with calendar quarters beginning Jan. 1.

    To adjust its reporting schedule, Goldman began fiscal 2009 on Jan. 1 instead of Dec. 1 of last year. The bank said for the month of December, which fell between the change in reporting cycles, it lost $1 billion, or $2.15 per share."
  • *MF*
    *MF* Posts: 3,113 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    chucky wrote: »
    where did they do this - do you have a link to it?


    While Goldman reported a strong first quarter, it also reported a loss of $1 billion in the month of December, underscoring how quickly its fortunes can change. That month was reported on its own because Goldman is changing the timing of its fiscal year by a month, to match the calendar year. The loss was in part related to write-downs on high-yield bonds, as well as deterioration in real estate.

    Extract from here:

    http://www.nytimes.com/2009/04/14/business/14goldman.html?_r=1&ref=business
    If many little people, in many little places, do many little things,
    they can change the face of the world.

    - African proverb -
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 14 April 2009 at 12:32PM
    GucciMane wrote: »
    Quote from CNBC.com:

    "The firm also switched its reporting cycle so its fiscal quarters were in line with calendar quarters beginning Jan. 1.

    To adjust its reporting schedule, Goldman began fiscal 2009 on Jan. 1 instead of Dec. 1 of last year. The bank said for the month of December, which fell between the change in reporting cycles, it lost $1 billion, or $2.15 per share."

    yes they did do that - however changing the cycle means it is reported in a different year. 2008 would have been adjusted - it wouldn't just disappear as you have said previously. do you not think shareholders would see straight through this?
    GucciMane wrote: »
    What Goldman Sachs didn't tell you is they re-adjusted their reporting schedule from Dec to Jan. Hence the 3 months to March made a profit. But the month of December that made a $1bill loss didn't have to be reported! Erased, Vanished, Disappeared! Fraud I say!

    the same article also says
    http://www!!!!bc.com/id/30195775 or here http://www.nytimes.com/2009/04/14/business/14goldman.html?_r=2&ref=business
    "What we're seeing right now is a time period where expectations are still pretty negatively biased," says Chris Armbruster, senior research analyst at Al Frank Asset Management in Laguna Beach, Calif. "I think a lot of people are skeptical of the rally, but if you're looking out a couple of years, right now we're sowing the seeds for a very healthy recovery."
    Goldman said profit was bolstered by strong revenue growth in its fixed income and currency businesses.
    GucciMane wrote: »
    These banks are being creative now to fool the public!

    this is the bit i agree with you - the change of accounting date is probably so as to be able pay a good dividend this year - it's creative accounting but is NOT fraud in anyway. in fact it probably will be reported on it's own.
    To adjust its reporting schedule, Goldman began fiscal 2009 on Jan. 1 instead of Dec. 1 of last year. The bank said for the month of December, which fell between the change in reporting cycles, it lost $1 billion, or $2.15 per share.

    Goldman's total revenue was $11.88 billion during the quarter, compared with $18.63 billion in the prior-year quarter. Analysts forecast revenue of $7.19 billion.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    *MF* wrote: »
    While Goldman reported a strong first quarter, it also reported a loss of $1 billion in the month of December, underscoring how quickly its fortunes can change. That month was reported on its own because Goldman is changing the timing of its fiscal year by a month, to match the calendar year. The loss was in part related to write-downs on high-yield bonds, as well as deterioration in real estate.

    Extract from here:

    http://www.nytimes.com/2009/04/14/business/14goldman.html?_r=1&ref=business

    Intresting at least they are in line with most other 1/4 ends.

    Although the £1Bn was a pain it still goes in to the figures for a full financial year so it as not disapeared as it still affects the P&L and B/S.

    You can only go on the most recent figures to judge what is happening and b all looks the last three months have been good for them.
  • GucciMane
    GucciMane Posts: 348 Forumite
    Yes i agree. Just thought i'd mention it, wasnt being serious.

    FASB has relaxed mark-to-market. If you believe these earnings, then you believe their fake balance sheets. How do you know whether their earnings are real or fantasy?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    GucciMane wrote: »
    Yes i agree. Just thought i'd mention it, wasnt being serious.

    FASB has relaxed mark-to-market. If you believe these earnings, then you believe their fake balance sheets. How do you know whether their earnings are real or fantasy?

    i don't know if they're correct. but like all company accounts from Cadburys to Shell - it's the shareholders that have to be happy with them.

    as far as mark-to-market being relaxed it was a good thing - do you know how a CDS or CDO gets priced?
  • ad44downey
    ad44downey Posts: 2,246 Forumite
    chucky wrote: »
    - it's creative accounting .
    That's what banks have been doing for years now. Nobody believes their claimed profit figures any longer.
    Krusty & Phil Madoff, 1990 - 2007:
    "Buy now because house prices only ever go UP, UP, UP."
  • lostinrates
    lostinrates Posts: 55,283 Forumite
    I've been Money Tipped!
    chucky wrote: »
    i don't know if they're correct. but like all company accounts from Cadburys to Shell - it's the shareholders that have to be happy with them.
    ?


    and regulatory bodies?:confused:
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