Contributor

David Geracioti is the editor-in-chief of Registered Rep. magazine and RegisteredRep.com. He is also a devotee of the Austrian School of Economics leading lights Ludwig von Mises and Friedrich von Hayek.

Goldman’s Gadfly

200px-goldman_sachs_logo.pngGoldman Sachs’ announcement that it netted $1.81 billion in its fiscal quarter ended March 27 was “amazing,” as Bernstein analyst Brad Hintz put it in a research note this morning. (Fixed income trading was credited with providing the fuel to recovery.) And, this morning, Goldman raised $5 billion by issuing common stock; the company wants to repay its $10 billion in TARP funds. Goldman is said to be eager to get out from under the gub’ment’s thumb. (By the way, Hintz says “accrued compensation” in the period was $4.71 billion, or about $675,000 per employee; the Wall Street Journal reports that 953 Goldman employees were paid $1 million and up last year. With that accrued comp — read: bonuses — in just three months, Goldman seems well on its way to paying gaudy rewards to its employees in this fiscal year too. The gub’ment, seeking to play populist demagogues on the issue, would love to get a hold of that and hit the bully pulpit.)


Of course, not everyone is cheering Goldman’s sucess. In fact, the New York Post reports this morning that a Florida blogger smells a conspiracy, to wit, the evil bankers did it. Mike Morgan, of Jensen Beach, Fla., a self-described entrepreneur, has launched a website, goldmansachs666.com , to act as an “open forum” for describing “what part Goldman Sachs and their [sic] executives played in the current Global Economic Crisis.” Morgan (his surname is an interesting coincidence, BTW) is hosting a conference call tomorrow, Tax Day, to drum up volunteer support in his endeavor. (Goldman, by the way, has asked him to quit using its name, arguing that Morgan is infringing on Goldman’s trademark.) We should point out that while it may offer oodles of fun, kicking around Wall Streeters, Morgan and his ilk should realize that it wasn’t just the bankers: Everyone is to blame from the gub’ment that forced banks into making stupid loans for social engineering and vote-getting purposes to greedy citizens who took loans they could not afford on stupid bets that housing was a miracle asset. The blame, Mister Morgan, should be applied with a wide brush.


Whoops! Hope my use of the GS logo is deemed “fair use.”

Leave a Comment

You must be logged in to post a comment:
Register Here or Log in Here.

About

Registered Rep. Editor-in-Chief David Aldo Geracioti on the business of Wall Street from a free-market perspective.

Calendar

April 2009
M T W T F S S
« Mar   May »
 12345
6789101112
13141516171819
20212223242526
27282930  

Archives

Recent Twitter Entries

    • Barclays Wealth is going after HNW clients in the Americas; it hired 50 FAs in '09, plans to add more than 100 in '10 to bring to about 500. 12 hrs ago
    • At TD Ameritrade's National Conference. About 1,200 advisors here, up by 30 percent from a year ago. 4 days ago
    • It's earnings season, but take Q4 earnings wtih a large grain of salt. Blog post on http://blog.registeredrep.com/von_aldo/ 3 weeks ago

Your Account

Subscribe

Subscribe to RSS Feed

Subscribe to MyYahoo News Feed

Subscribe to Bloglines

Google Syndication

Back to Top