Even the big boys have a "bad hair day." Goldman Sachs (GS) fourth-quarter profit fell 52% year over year.The Wall Street Journal (subscription required) reports that Goldman posted a profit of $2.39 billion, down from $4.95 billion a year ago. After preferred dividends, profit fell to $3.79 per share from $8.20 a year ago. Revenue dropped 10% to $8.64 billion. Analysts polled by Thomson Reuters had forecast earnings of $3.76 a share on $9 billion in revenue.

Other highlights of the report included:

Continue reading Goldman Sachs Profit Falls 52%

Goldman Sachs Profit Falls 52% originally appeared on BloggingStocks on Wed, 19 Jan 2011 11:10:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Market Bounces Back with a Vengeance (AIB, MCO, NBG, GS, PLD)

Closing Bell: Market Bounces Back with a Vengeance (AIB, MCO, NBG, GS, PLD) originally appeared on BloggingStocks on Mon, 10 May 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: Goldman Sachs Shares Dirt Cheap

Serious Money: Goldman Sachs Shares Dirt Cheap originally appeared on BloggingStocks on Tue, 27 Apr 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: A Wishy-Washy Trading Day (AAPL, YHOO, GILD, CYBS, V, VITC, GS)

Closing Bell: A Wishy-Washy Trading Day (AAPL, YHOO, GILD, CYBS, V, VITC, GS) originally appeared on BloggingStocks on Wed, 21 Apr 2010 16:00:00 EST. Please see our terms for use of feeds.

Is this the first time you've heard about the Financial Crisis Inquiry Commission? Probably. It seems that Treasury Secretary Geithner organized the commission to investigate what went wrong during the financial crisis of 2008! That's right 2008! Can you imagine -- the public has been clamoring for answers as to what happened during the meltdown, and now a year later they decided to open an investigation.

The Commission was created by Congress to examine the causes of the collapse that roiled global markets and led to a $700 billion U.S. bailout of the nation's banks.

Continue reading Bank Executives to Testify Before the Financial Crisis Inquiry Commission

Bank Executives to Testify Before the Financial Crisis Inquiry Commission originally appeared on BloggingStocks on Sun, 27 Dec 2009 14:20:00 EST. Please see our terms for use of feeds.

Continue reading Goldman Sachs sued over expected bonuses

Goldman Sachs sued over expected bonuses originally appeared on BloggingStocks on Tue, 15 Dec 2009 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Goldman Sachs CEO Lloyd Blankfein pulls a Jeff Skilling in an interview

Goldman Sachs CEO Lloyd Blankfein pulls a Jeff Skilling in an interview originally appeared on BloggingStocks on Mon, 09 Nov 2009 10:50:00 EST. Please see our terms for use of feeds.

Who are they? First, we have Lloyd Blankenstein, CEO of Goldman Sachs Group (NYSE GS). Then we have Jamie Dimon, CEO of JPMorgan Chase & Company (NYSE JPM) and then CEO, Vikam Pandt of Citigroup Inc. (NYSE C).

You are probably also wondering how do we know this? The Associated Press did a review of Geithner's calendar under the Freedom of Information Act.

In his first seven months on the job, Geithner made at least 80 contacts with the "big three." Not only that Geithner jumps to the phone when they call. They are the dominant players on Wall Street who can move markets and even economies.

Continue reading Why does Geithner always take calls from the big three bankers?

Why does Geithner always take calls from the big three bankers? originally appeared on BloggingStocks on Thu, 08 Oct 2009 14:20:00 EST. Please see our terms for use of feeds.

Continue reading Goldman Sachs CEO blasts excessive compensation

Goldman Sachs CEO blasts excessive compensation originally appeared on BloggingStocks on Wed, 09 Sep 2009 15:20:00 EST. Please see our terms for use of feeds.

Talk of "green shoots" abounds with the S&P 500 up 40% from its lows in March 2009, but Goldman Sachs (NYSE: GS) CEO Lloyd Blankfein remains cautious in his outlook for the global economy. "I think it's going to be a long, protracted recession," he said while speaking on a panel at the annual International Organization of Securities Commissions (IOSCO) conference in Tel Aviv.

Blankfein also emphasized the importance of intelligent regulation and risk management, warning fellow finance executives not to discount the latter. "The culture of risk management is very important and hard to legislate, but at the end of the day, you have to make sure that the people on the risk management side of your operation are just as capable, and maybe therefore, just as well-paid and have the career opportunities as people on the producing side of the business."

Continue reading Goldman CEO Blankfein cautious on recovery

Goldman CEO Blankfein cautious on recovery originally appeared on BloggingStocks on Thu, 11 Jun 2009 12:20:00 EST. Please see our terms for use of feeds.

The founders of Goldman Sachs (NYSE: GS) can stop rolling over in their graves. Management is about to bring the firm back to its rightful place on Wall Street. With a $5 billion equity offering, the esteemed firm is going to pay the government back the money from the TARP and get on with being the biggest, baddest firm on the Street. Enough of the handcuffs. It wants to get back in the capital markets ring and knock everybody else out.

Goldman Sachs as a bank? Just wasn't in their entrepreneurial blood. They could no more cater to the whims of regulators than a Ferrari can be used as a school bus. These guys are risk takers and big rewarders. They do their homework, make big bets, and reap the profits, if there are any, or lose millions. And when they're right, they want the money. As a bank and TARP recipient, there were rules about risk and limits on pay. That really chafed.

Continue reading Comfort Zone Investing: Goldman Sachs goes head hunting

Comfort Zone Investing: Goldman Sachs goes head hunting originally appeared on BloggingStocks on Sat, 18 Apr 2009 10:30:00 EST. Please see our terms for use of feeds.

Yesterday, in his speech to the Council on Institutional Investors, Goldman Sachs (NYSE: GS) CEO Lloyd Blankfein spoke about Wall Street pay. As a fellow who made $43 million in 2008 -- to be fair, Goldman actually made a $2.3 billion profit in 2008 -- Blankfein obviously knows a thing or two about the Wall Street pay envelope.

And he gets points for trying to balance Goldman's interests with those of the public -- but he still missed the mark. I think Wall Street needs its pay in escrow -- if its deals pay off after three years, bankers get the escrow cash; if not, that escrow pays the deals' investors.

Continue reading Goldman CEO swings for saner pay system -- and misses

Goldman CEO swings for saner pay system -- and misses originally appeared on BloggingStocks on Wed, 08 Apr 2009 10:10:00 EST. Please see our terms for use of feeds.

An era of greed that began with the election of Ronald Reagan has come to an abrupt end. That means that the seething emotions of greed and envy that come along with bonus time at investment banks will have fewer dollars attached to them. And talent will flow to government and academia rather than Wall Street. This could be good for the U.S.

Some of those masters of the universe in the investment banking industry have seen the value of their stock tumble (and many of them are going without bonuses this year). Here are some of the "casualties":

Continue reading Masters of the universe take a pay cut

Masters of the universe take a pay cut originally appeared on BloggingStocks on Tue, 27 Jan 2009 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bBACbailoutexecutive compensationexecutive payExecutiveCompensationExecutivePayfeaturedGSjohn thainJohnThainlloyd blankfeinLloydBlankfeinmerrill lynchMerrillLynchvikram panditVikramPanditwall streetWallStreetTue, 27 Jan 2009 11:40:00 ESThttp://www.bloggingstocks.com/2008/12/24/madoff-airlines-wall-street-we-dont-need-no-stinkin-regulat/http://www.bloggingstocks.com/2008/12/24/madoff-airlines-wall-street-we-dont-need-no-stinkin-regulat/http://www.bloggingstocks.com/2008/12/24/madoff-airlines-wall-street-we-dont-need-no-stinkin-regulat/#commentssigns, like Madoff's incredible secrecy, his surprisingly consistent rate of return, and the clubby nature of his selling staff, there were far more obvious portents. For example, Madoff's chief compliance officer was his brother Peter, and one of the compliance attorneys was his niece. For that matter, the fact that Harry Markopolos, a Boston accountant, has been urging the SEC to investigate Madoff for the last nine years should have been a hint. The same, of course, goes for the 2006 SEC investigation that found violations, but didn't feel obliged to take any substantive action.

As the SEC attempts to assign blame in finest Three Stooges form, it's worth noting that this is hardly the first time that a lack of serious governmental regulation has reared its ugly head this year. At the moment, mobs are currently clamoring for Dick Fuld's head, with a healthy side order of Hank Greenberg, John Thain, John Mack, Lloyd Blankfein, Jimmy Cain, and pretty much everyone who works in New York's financial district. The general perspective seems to be that these men engaged in business practices that ran the gamut from risky to actionable and now should be forced to pay for the economy that they have ruined.

Continue reading Madoff, airlines, Wall Street: We don't need no stinkin' regulation!

Madoff, airlines, Wall Street: We don't need no stinkin' regulation! originally appeared on BloggingStocks on Wed, 24 Dec 2008 16:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bernard MadoffBernardMadoffDick FuldDickFuldHank GreenbergHankGreenbergHarry MarkopolosHarryMarkopolosJet BlueJetBlueJimmy CainJimmyCainJohn MackJohn ThainJohnMackJohnThainLloyd BlankfeinLloydBlankfeinmadoffNew York magazineNewYorkMagazinePeter MadoffPeterMadoffTarmac Task ForceTarmacTaskForceWed, 24 Dec 2008 16:30:00 ESThttp://www.bloggingstocks.com/2008/12/08/cheap-stocks-goldman-sachs-group/http://www.bloggingstocks.com/2008/12/08/cheap-stocks-goldman-sachs-group/http://www.bloggingstocks.com/2008/12/08/cheap-stocks-goldman-sachs-group/#commentsFiled under: Goldman Sachs Group (GS), S and P 500, Stocks to Buy, Financial Crisis

This post is part of a series featuring bargain stocks that are worth a look now. See more Cheap Stocks.

Of the 15 components on our Cheap Stocks roster, Goldman Sachs Group (NYSE: GS) is the one that my colleague Nick Perry dubbed "a bold choice." With plenty of question marks still surrounding the major financial names, there are undoubtedly those who will go even further and dub this pick "an unwise choice." On the other hand, some will probably just say we're stealing Warren Buffett's idea. With all potential criticisms thusly taken into consideration, let's take a look at what makes Goldman so hard to resist.

First, let's be upfront about the fundamentals. Amid the recent financial crisis, Goldman Sachs is one of the few major names on Wall Street that still has a pulse. Although it's now a bank holding company rather than an investment bank, Goldman stands out by sheer virtue of the fact that it has dodged bankruptcy rumors and has not needed an emergency rescue by one of its peers.

In fact, Goldman Sachs survived because it knew that most of those subprime-derived securities were toxic, and placed bets that the investments would lose value. Regardless, the bank still sold those securities to its clients, so we're not talking about the financial equivalent of Mother Theresa. On the bright side, nor are we discussing the financial equivalent of Nero -- and in today's market, there are plenty of favorable comparisons to be made between GS and its sector peers.

Continue reading Cheap Stocks: Goldman Sachs Group

Cheap Stocks: Goldman Sachs Group originally appeared on BloggingStocks on Mon, 08 Dec 2008 18:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BACBank of Americacheap stocksCountrywidefinancial crisisGoldman Sachsgoldman sachs groupgsLloyd BlankfeinMERMerril LynchNick Perrysubprimewarren buffettMon, 08 Dec 2008 18:10:00 ESThttp://www.bloggingstocks.com/2008/11/12/defiance-from-goldman-sachs-gs/http://www.bloggingstocks.com/2008/11/12/defiance-from-goldman-sachs-gs/http://www.bloggingstocks.com/2008/11/12/defiance-from-goldman-sachs-gs/#commentsFiled under: Goldman Sachs Group (GS), Wells Fargo (WFC)

Even with its stock off by an enormous amount, it is business as usual at Goldman Sachs (NYSE: GS). Its CEO sees no reason to change course even with its new status as a commercial bank. Perhaps, all the money from Warren Buffett and the Treasury have made it feel secure even in these dangerous markets. Rumors that it would have to raise more money have pressured the stock in recent days.

Goldman Chief Executive Chief Executive Lloyd Blankfein was almost defiant in a presentation yesterday. According to The Wall Street Journal, he said "We're going to consider everything," but won't be provoked into "doing something rash" that the company will spend years reversing,"

Taken at face value, the comments could call a bottom to the financial crisis among the more healthy firms in the financial sector. The weak sisters in the industry may not be saved, but, with federal money moving into the market and hope that plans by the government may make housing prices more stable, Goldman and strong banks like Wells Fargo (NYSE: WFC) may be in a position as dominant and relatively healthy companies to expand their franchises as competitors simply hope to survive.

Of course, if the recession gets substantially worse and lasts well over a year, optimistic predictions won't be worth a dime.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Defiance from Goldman Sachs (GS) originally appeared on BloggingStocks on Wed, 12 Nov 2008 08:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>GSinthenewslloyd blankfeinLloydBlankfeinWarren BuffettWarrenBuffettWFCWed, 12 Nov 2008 08:30:00 ESThttp://www.bloggingstocks.com/2008/10/23/goldmans-10-layoffs-reflect-debts-dangers/http://www.bloggingstocks.com/2008/10/23/goldmans-10-layoffs-reflect-debts-dangers/http://www.bloggingstocks.com/2008/10/23/goldmans-10-layoffs-reflect-debts-dangers/#commentsFiled under: Major Movement, Goldman Sachs Group (GS), DJIA

The Goldman Sachs Group (NYSE: GS) plans to can 10% of its 32,500 person staff. Despite its glorious reputation, Goldman is not that different from other financial institutions (FIs). It earned high returns by borrowing too much and now that over-borrowing is causing a painful implosion. As I pointed out last night at The Wharton Club of Boston, the current debt-led bubble has cost $37 trillion so far -- six times more than the equity-led dot-com bubble.

The cost of debt is clear from a quick examination of Goldman's financial statements under current CEO Lloyd Blankfein. When he took over from current Treasury Secretary Hank Paulson, Goldman's ratio of assets to shareholder equity was 18.7 but by the end of 2007, the ratio peaked at 26.2 as assets more than doubled to $1.1 trillion and its return on equity (ROE) climbed to 32%.

Much of the increase in Goldman's ROE was due to debt. In particular, 65% of the increase in Goldman's ROE from 2003 to 2006 was a result of its industry-leading use of borrowed money to increase its assets. While high leverage amplifies returns when asset values climb, it causes even more offsetting pain when asset values decline. For example, the $305 billion in profits earned by the top nine investment banks over the last three years has been wiped out by $323 billion in write-downs in the last year.

Continue reading Goldman's 10% layoffs reflect debt's dangers

Goldman's 10% layoffs reflect debt's dangers originally appeared on BloggingStocks on Thu, 23 Oct 2008 09:43:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>featuredGSinvestment bankingInvestmentBankinglloyd blankfeinLloydBlankfeinWall StreetWallStreetThu, 23 Oct 2008 09:43:00 ESThttp://www.bloggingstocks.com/2008/08/22/goldman-sachs-employees-blocked-from-facebook-dealbreaker/http://www.bloggingstocks.com/2008/08/22/goldman-sachs-employees-blocked-from-facebook-dealbreaker/http://www.bloggingstocks.com/2008/08/22/goldman-sachs-employees-blocked-from-facebook-dealbreaker/#commentsFiled under: Management, Goldman Sachs Group (GS)
Goldman Sachs Group Inc. (NYSE: GS) is cracking down on how its employees can waste their time while they are at work.

According to Dealbreaker, the top investment bank has blocked Facebook and prohibits workers from posting comments on the snarky Web site. The incident is so noteworthy that the gossip blog has a flashing siren graphic above its post on the topic.

"I'm sure the lot of you are going to argue that the vast majority of financial firms have long blocked access to the social networking site, but Goldman's supposed to be above such pedestrian measures," the blog says, adding that Chief Executive Lloyd Blankfein used to not care about such things as "as long as you're kicking ass (by lying about level three assets)."

Fair enough but times are tough on Wall Street. Investment bankers are scrambling to hold onto their jobs as the credit crunch shows no signs of easing. Nannies who used to care for the children of Wall Streeters are finding themselves unemployed. I am sure the strippers at New York's "gentlemen's clubs" are hurting too.

Even Goldman, the best run of any Wall Street bank, is not immune. Its shares are down more than 25 percent this year. Maybe Blankfein needs to remind Goldman's employees that they should be grateful to have jobs at a time when banks are laying off tens of thousands. They are plenty of eager people who could live without recreational Internet surfing who would love to take their place.

Goldman Sachs employees blocked from Facebook, Dealbreaker originally appeared on BloggingStocks on Fri, 22 Aug 2008 15:57:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>dealbreakerGSinthenewsinvestment banksInvestmentBankslloyd blankfeinLloydBlankfeinWall StreetWallStreetFri, 22 Aug 2008 15:57:00 ESThttp://www.bloggingstocks.com/2008/02/01/is-lazards-bruce-wasserstein-one-of-wall-streets-biggest-loser/http://www.bloggingstocks.com/2008/02/01/is-lazards-bruce-wasserstein-one-of-wall-streets-biggest-loser/http://www.bloggingstocks.com/2008/02/01/is-lazards-bruce-wasserstein-one-of-wall-streets-biggest-loser/#commentsFiled under: Goldman Sachs Group (GS), Bear Stearns Cos (BSC)

Bruce Wasserstein's New York Magazine published a list of Wall Street titans who have seen their personal net worth decline in the last year. One name was conspicuously absent from that list: Bruce Wasserstein, who would rank second on the list of biggest losers if he not decided to exclude himself from his own publication. This type of omission has a proud history, as I have never seen Steve Forbes's name on his magazine's rich list.

Nevertheless, here are the top three biggest losers when Wasserstein's name is added accompanied by the amount they have lost:

• The Bear Stearns Companies (NYSE: BSC) former CEO James Cayne saw his net worth plummet $467 million
• Lazard Ltd.'s (NYSE: LAZ) CEO Bruce Wasserstein's net worth has fallen fallen $260 million. (This is calculated by multiplying Wasserstein's 11,394,504 shares by Lazard's stock tumble -- from its May 2007 high of $56.90 to January 24, 2008's $34.09); and
• The Goldman Sachs Group's (NYSE: GS) CEO Lloyd Blankfein has suffered a $100 million decline.

It's nice to own the means of production over at New York Magazine -- and that ownership clearly influences what it chooses not to publish.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Is Lazard's Bruce Wasserstein one of Wall Street's biggest losers? originally appeared on BloggingStocks on Fri, 01 Feb 2008 13:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bear StearnsBearStearnsBruce WassersteinBruceWassersteinBSCGOldman SachsGoldmanSachsGSinthenewsJames CayneJamesCayneLAZLazardLloyd BlankfeinLloydBlankfeinNew York MagazineNewYorkMagazineFri, 01 Feb 2008 13:55:00 ESThttp://www.bloggingstocks.com/2007/12/18/goldman-sachs-posts-solid-results/http://www.bloggingstocks.com/2007/12/18/goldman-sachs-posts-solid-results/http://www.bloggingstocks.com/2007/12/18/goldman-sachs-posts-solid-results/#commentsFiled under: Before the Bell, Earnings Reports, Goldman Sachs Group (GS), Morgan Stanley (MS), Bear Stearns Cos (BSC)
Goldman Sachs Group Inc. (NYSE: GS) today posted solid fourth quarter results which were particularly impressive given the turmoil on Wall Street.

Profit after paying preferred dividends was $3.17 billion, or $7.01 per share, compared with $3.10 billion, or $6.59 per share in the year-ago period. Revenue rose 14% to $10.74 billion. Wall Street analysts were expecting profit of $6.87 per share on revenue of $10.16 billion, according to Thomson Financial.

Investment Banking net revenue rose 47% to $1.97 billion, while Trading and Investments jumped 4% to $6.93 billion and Asset Management and Security Services increased 29% to $1.84 billion.

In the press release, Chief Executive Lloyd Blankfein said the New York-based investment bank continues to "see significant growth opportunities across the global economy."

Ralph Cole of Ferguson Wellman Inc., a Goldman shareholder, summed up the situation well to Bloomberg News:
"They continued to perform as every one of their competitors had troubles..They've been able to establish that they're the best investment bank out there.''

Goldman seems to be profiting at the expense of its rivals. As Bloomberg notes, analysts expect Morgan Stanley (NYSE: MS) and Bear Stearns Cos. (NYSE: BSC) to both report their first ever quarterly loss because of bad bets on mortgage securities.

Goldman Sachs posts solid results originally appeared on BloggingStocks on Tue, 18 Dec 2007 09:50:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bscearningsgsinthenewsinvestment bankingInvestmentBankinglloyd blankfeinLloydBlankfeinmswall streetWallStreetTue, 18 Dec 2007 09:50:00 EST