Friday
Apr162010
$1 Billion Turns Into $14.5 Billion
Friday, April 16, 2010 at 12:14PM The CDO involved in the Goldman lawsuit cost investors on the wrong side of the trade about $1 billion. Goldman Sachs (GS) is down $25 at the moment, which translates into $14.5 billion of market cap. Are these charges going to cost Goldman $14.5 billion?
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Reader Comments (6)
The question is not that if these charges going to cost goldman 14.5 billion, it is that as of yesterday does goldman value at $180+ per share? This market certain is NOT efficient... this is a momentum chaser market.. Now if you really want to talk about value, is U.S of A better off in terms of job condition, debt load, economic condition better now then the 1980s? I don't think so, so why is SPX at 1200 level and not 200s?
It is quite possible - think about the revenue lost because of reputation loss.
Ofcourse, the other banks are perhaps not too good either!
If Goldman knew this was coming then they would have front run this and sold short their own stock. Anybody checked GS option activity?
What must be remembered is that Goldman is a wholesale financed business based on reputation.
Ask Lehman Brothers and Bear Stearns how much a little innuendo would later cost them.
Let's see if Warren Buffet will still call Goldman one of the most ethical organizations he has ever seen.
What goes around comes around
Yes read that on ZeroHedge too, now could GS prop trader disguised themselves in retail option playground and that's why ISEE (indices only) on the 13th was super low?
Investigations like this tend to grow. Documents get turned over on subpoena, witnesses are deposed... If GS has any other skeletons in its closet (which it almost certainly does), this investigation may bring them to light.