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goldman sachs
lemonjelly
Posts: 8,014 Forumite
http://www.bbc.co.uk/news/business-15353145
$393million loss in a quarter.
It looks like they could be in a spot o' bother!
Do we expect a similar pressure on the banking system to the one of 2 years ago? Clearly there have been a number of downgrades recently - both for countries and banks. AIUI RBS & others are not out of danger yet.
If the financial system did go back into a crisis, what next?:eek:
$393million loss in a quarter.
It looks like they could be in a spot o' bother!
Do we expect a similar pressure on the banking system to the one of 2 years ago? Clearly there have been a number of downgrades recently - both for countries and banks. AIUI RBS & others are not out of danger yet.
If the financial system did go back into a crisis, what next?:eek:
It's getting harder & harder to keep the government in the manner to which they have become accustomed.
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lemonjelly wrote: »http://www.bbc.co.uk/news/business-15353145
$393million loss in a quarter.
It looks like they could be in a spot o' bother!
Do we expect a similar pressure on the banking system to the one of 2 years ago? Clearly there have been a number of downgrades recently - both for countries and banks. AIUI RBS & others are not out of danger yet.
If the financial system did go back into a crisis, what next?:eek:
News seemed to suggest that this was accounting policy as much as anything else with another American bank reporting increased profitability again down to asset revaluation.
Methinks it is more about tax payment/avoidance/timing but then what do I know?
Not quite sure what you mean by "back into crisis" it never came out of it."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I shouldn't worry, as far as I know they've double shorted themselves so if they go to the wall it'll be alright.0
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How do they work out the profit sharing bonus on that result
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Normally based on individual performance.0
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How do they work out the profit sharing bonus on that result
I realise that you are joking but there is an answer to your question.
Each trading desk is an individual profit centre which then pays for a proportion of things like the cost of ops staff, IT etc. On top of that, each trader will have their individual P&L tracked.
Usually, front office bonuses are calculated using a formula which takes individual, desk and branch P&L into account so it is quite possible (as I saw at one bank) for a bond trader to stuff up and cost the FX desk a large chunk of their bonuses. That goes down about as well as you'd imagine with the FX boys!0 -
To suggest that Goldman Sachs are in trouble based on one quarterly loss (largely due to short-term losses on proprietary share trading) is absolute nonsense and demonstrates a ludicrously simplistic understanding of what investment banks actually do.
Goldman Sachs is a money machine.
Frankly, it wouldnt surprise me that this is a 'manufactured loss' probably due to some advance tax liability or accounting restructure, simply to take the heat off themselves.0 -
To suggest that Goldman Sachs are in trouble based on one quarterly loss (largely due to short-term losses on proprietary share trading) is absolute nonsense and demonstrates a ludicrously simplistic understanding of what investment banks actually do.
Goldman Sachs is a money machine.
Frankly, it wouldnt surprise me that this is a 'manufactured loss' probably due to some advance tax liability or accounting restructure, simply to take the heat off themselves.
There's nothing magical about GS. They have some great employees and work hard but they make mistakes like anyone else and investment bankers are pretty much top of any left wing politician's list of who to shaft.
There's a potentially big problem headed their way in the shape of Groupon.0 -
There's a potentially big problem headed their way in the shape of Groupon.
In what way? did they get a dodgy voucher for the Christmas bash?...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
neverdespairgirl wrote: »In what way? did they get a dodgy voucher for the Christmas bash?
Ha ha, no. It's a little bit worse than that potentially.
They're co-lead underwriters for the Groupon IPO. As underwriters of what was a pretty prestigious deal at the time (although looking less so by the day) they estimated the value of Groupon to be $30,000,000,000. Now estimates are that it is worth $10,000,000,000 and that's an estimate that looks very toppy to me as there are several things about the deal that are rather whiffy.
It turns out that the Chairman of Groupon has a past. Also, in a previous round of fund raising, the vast majority of the money raised went straight into the pockets of the owners and workers rather than being used as capital to grow the business.
Past earnings have had to be 'restated' recently (apparently due to an error rather than an attempt to defraud by increasing the value of the stock).
Now even at a valuation of $10,000,000,000, Goldmans make a lot of money. My feeling is that they may struggle to sell the stock however which would be a big problem for them as they could be left with a lot of stock on their hands with no clear market for it. The business model for Groupon appears unsustainable and without this IPO then bankruptcy looked less than a year away from my rather unsophisticated look at the numbers.0
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