Comments on: Goldman Sought to Merge with Citi http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html Sun, 22 Nov 2009 04:39:16 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: anon3 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html#comment-23433 anon3 Tue, 28 Oct 2008 05:00:00 +0000 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi/#comment-23433 Anonymous,<br/><br/>I know many people from Wall Street whose friends actually worked for GS or they worked themselves at GS, and they say something else. Plus, you are ignoring the fact that GS predicted and strategized to SHORT MORTGAGE PAPER. Plus you are ignoring the clear insistence that employees of Goldman be aware of keeping the name GS relatively sane. Therefore, I for one will continue to believe that GS is superior to the others. Anonymous,

I know many people from Wall Street whose friends actually worked for GS or they worked themselves at GS, and they say something else. Plus, you are ignoring the fact that GS predicted and strategized to SHORT MORTGAGE PAPER. Plus you are ignoring the clear insistence that employees of Goldman be aware of keeping the name GS relatively sane. Therefore, I for one will continue to believe that GS is superior to the others.

]]> By: groucho http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html#comment-23393 groucho Mon, 27 Oct 2008 14:07:00 +0000 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi/#comment-23393 This just reinforces what I thought at the time of the "injection plan"<br/><br/><br/>"That’s at the core of King Tut’s strategy. The cash injection is primarily designed to help GS and MS as they are leveraged the most(ibank balance sheets)" This just reinforces what I thought at the time of the “injection plan”

“That’s at the core of King Tut’s strategy. The cash injection is primarily designed to help GS and MS as they are leveraged the most(ibank balance sheets)”

]]> By: your friendly investment banker http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html#comment-23382 your friendly investment banker Mon, 27 Oct 2008 10:28:00 +0000 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi/#comment-23382 When times are tough, parasites start eating other parasites. I guess they call it "consolidation". When times are tough, parasites start eating other parasites. I guess they call it “consolidation”.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html#comment-23379 Anonymous Mon, 27 Oct 2008 09:54:00 +0000 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi/#comment-23379 I was a client of GS (admittedly many, many years ago) and their 'raison d'etre' was there abiity, for a fee, to take on any risk that you didn't want (prepayment, currency, interest rate, credit). <br/><br/>All you had to do was to trust their balance sheet to make good on their promise.<br/><br/>They would hint vaguely at their power to manage the risk they asumed from you in various markets. You were led to believe that GS actually managed to make money taking on these risks no one else dared touch.<br/><br/>Turns out they were mostly running an enormous, albeit very successful, Ponzi scheme where they relied on new customers to pay off the old. <br/><br/>The new customers stopped in coming circa 2007.<br/><br/>The GS cultists (including our current Tsy Sec) still believe that GS had some secret formula and are vital to the health of the nation. That GS is some great and grand Wizard.<br/><br/>Other than Hank Paulson and the CNBC crew, however, most people are not going to stop paying attention to that little man behind the screen. I was a client of GS (admittedly many, many years ago) and their ‘raison d’etre’ was there abiity, for a fee, to take on any risk that you didn’t want (prepayment, currency, interest rate, credit).

All you had to do was to trust their balance sheet to make good on their promise.

They would hint vaguely at their power to manage the risk they asumed from you in various markets. You were led to believe that GS actually managed to make money taking on these risks no one else dared touch.

Turns out they were mostly running an enormous, albeit very successful, Ponzi scheme where they relied on new customers to pay off the old.

The new customers stopped in coming circa 2007.

The GS cultists (including our current Tsy Sec) still believe that GS had some secret formula and are vital to the health of the nation. That GS is some great and grand Wizard.

Other than Hank Paulson and the CNBC crew, however, most people are not going to stop paying attention to that little man behind the screen.

]]> By: Max http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html#comment-23352 Max Mon, 27 Oct 2008 05:44:00 +0000 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi/#comment-23352 Yves,<br/><br/>what is the culture at GS? Just wondering if you can maybe elaborate a little bit, without violating NDAs and naming names. I would be interested to hear from a pro how these guys operate. Yves,

what is the culture at GS? Just wondering if you can maybe elaborate a little bit, without violating NDAs and naming names. I would be interested to hear from a pro how these guys operate.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html#comment-23351 Anonymous Mon, 27 Oct 2008 05:29:00 +0000 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi/#comment-23351 A friend of mine just completed a plane trip frome France to the West Coast, read about financial stuff all the way and came up with the following ditty as his takeaway:<br/><br/>What do you use for a coverup?<br/><br/>A TARP. A friend of mine just completed a plane trip frome France to the West Coast, read about financial stuff all the way and came up with the following ditty as his takeaway:

What do you use for a coverup?

A TARP.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html#comment-23336 Anonymous Mon, 27 Oct 2008 03:24:00 +0000 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi/#comment-23336 One whole phone call, huh? Well, it's nice to know they moved heaven and earth to attempt a private solution before finally opening the Treasury checkbook. One whole phone call, huh? Well, it’s nice to know they moved heaven and earth to attempt a private solution before finally opening the Treasury checkbook.

]]> By: Don http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html#comment-23325 Don Mon, 27 Oct 2008 02:11:00 +0000 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi/#comment-23325 "The possibility of serious merger talks between Citi and Goldman became a non-starter after this month’s decision by the US Treasury to inject $125bn of capital in the two companies and seven rivals."<br/><br/>In other words, they stopped considering a private deal when the government intervened. Am I wrong?<br/><br/>Don the libertarian Democrat “The possibility of serious merger talks between Citi and Goldman became a non-starter after this month’s decision by the US Treasury to inject $125bn of capital in the two companies and seven rivals.”

In other words, they stopped considering a private deal when the government intervened. Am I wrong?

Don the libertarian Democrat

]]> By: PeakVT http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi.html#comment-23322 PeakVT Mon, 27 Oct 2008 01:41:00 +0000 http://www.nakedcapitalism.com/2008/10/goldman-sought-to-merge-with-citi/#comment-23322 Insanity. Like one of my senators said, too big to fail is too big to exist, and both banks already met that criteria. Insanity. Like one of my senators said, too big to fail is too big to exist, and both banks already met that criteria.

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