*I wonder what kind of flap Congress will get over all of this. Not much now for sure, considering GS had stellar earnings. But when the American get the jist in the next leg of the double dip and realize that GS has benefitted at their expense, all hell will break loose and GS will be the likely target of anger and rage.
Analysis: Goldman execs' share sales reveal holes in partnership theory
Between mid-September and May, Goldman Sachs' top executives sold about $691 million in stock, according to filings with the Securities and Exchange Commission and other calculations. While such stock sales are common during certain "windows" of opportunity, this period saw a significant increase. Goldman Sachs CEO Lloyd Blankfein touts the firm's partnership structure as helping maintain its competitive edge. However, the share sales show that the partnership theory is not airtight, according to this article.
Only the decision by both banks to convert into bank holding companies – thereby putting themselves under the regulatory purview of the Federal Reserve – stemmed the wave of selling among investors. On October 13, the government decision to give Goldman and Morgan Stanley $10bn each in troubled asset relief programme (Tarp) funds – part of a larger bail-out of the top nine US banks – helped solidify their position. Nevertheless, higher than average share sales by Goldman partners continued through January and February of this year, only tapering off in April, following Goldman’s strong first- quarter performance. Goldman paid back its Tarp money last month.
Financial Times (tiered subscription model) (7/14)
No comments:
Post a Comment