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Fraud*
According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

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Saturday, September 4, 2010

Goldman Sachs Set to Unwind Its Proprietary Trading

GS is giving itself lots of time (four years plus) to figure out how to make up for revenues lost by this action. It will be interesting to see how compliance will be accomplished at the same time.



Goldman Sachs Said to Shut Principal Strategies Unit


Goldman Sachs Group Inc. is disbanding its principal-strategies business, one of the groups that makes bets with the firm’s own money, to comply with new U.S. rules aimed at curbing risk, two people with knowledge of the decision said.

Wall Street’s most profitable investment bank plans to hold off on announcing the wind-down while the 65 to 70 members of the global unit seek new jobs, the people said, speaking anonymously because the internal discussions about the process are confidential. Some traders and support staff may get roles within the New York-based firm, while a team in Asia may raise money for a new hedge fund, the people said.

“The Dodd-Frank bill caused them to have some damage to the business here and they said it’s done, let’s get rid of it,” Michael Holland, who oversees more than $4 billion as chairman of Holland & Co. in New York, told Bloomberg Television. “They’re saying, ‘We don’t want these people to be worrying about what they’re going to be doing a couple of years from now, we’re just going to get rid of the uncertainty.”


Read the article and see videos here

3 COMMENTS:

Anonymous said...

You can learn quite a bit from this gent:


"Thought For The Day

The accounting for trading departments would also reflect the error account and markdown of positions.

It is reasonable then to assume that the mark up of OTC derivatives due to the FASB’s capitulation would also be accounted for there. These mark ups then would be reflected as trading profits even though they are purely accounting profits.

As such, the closing down of proprietary trading departments may well reflect recent modest or negative performance in actual trading aside from paper mark ups of OTC derivatives.


http://tinyurl.com/29vp33d

Anonymous said...

Well, at least Goldman's actions were reviewed by its peers:

Richest lawmakers grew wealthier as economy faltered

http://tinyurl.com/26fxwyu

Anonymous said...

Looks like someone finally put into words what we're all thinking...


My Country My Ass

http://market-ticker.org/akcs-www?post=165965

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