Wednesday, January 18, 2012

Goldman Sachs. RIP.

Goldman Sachs © fintag

News comments:
Goldman Sachs is a bit like the Catholic Church. Nobody really understands what goes on behind closed doors.

The hedge fund, sorry bank, has come along way. It was just another American bank in the 1980's when it was cooler and more profitable to work for Salomons or Bear Stearns and even Morgan Stanley [Ed: Really?]. Today it employs google smart people and is driven by money and not politics, unlike many of its competitors.

The chaff is continually thrown out and in 2011 many were let go in an attempt to keep the average bonus levels up. Profits may have dived 50% as Goldman provided lots of bonus provisions for itself (the shareholder comes third, the client second and the employees first). The party is over though. Recent Goldman IPOs have been failures and many ex Goldman hedge fund start ups never get off the ground. Alpha is dead and interns don't want to work there. The good days are over.

Goldman Sachs is in its last ever year. Volker will kill off Goldman Sachs and they know it which is why they are paying bonuses because these are the last.

So what happens next? Will Goldman become a partnership again? Will it leave the USA and HQ in London? Will it just turn itself into a hedge fund?

Whatever it does, it will be a shame for we all love a villain.

Today's shorts:
Hedgies force a Greek default (independent)

Goldman lawyer moves (bloomberg)

Goldman playboy gets STD (efinancialcareers)

Today's longs:
Goldman were the first to use Blackberry devices so it makes sense to help RIM out (zdnetasia)

Goldman Sachs to be bought out by Ocado.


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