Record Quarterly Earnings
“[Washington, D.C.] is a government to a large degree controlled by financiers, the mentality of whom is near to the facist frame of mind. If Hitler were not such a lunatic, he could easily have avoided hostilities with the Western powers.” – Albert Einstein comment on Sept 3, 1942, to Frank Kingdon (Einstein Archive 55-469):
From the book “The New Quotable Einstein” Ed. Alice Calaprice.
Here is the post from Bloomberg. I’m not taking shots at them but… let’s just say my attack is not on Bloomberg, although their complete lack of presenting the big picture speaks volumes about their journalistic integrity.
July 14 (Bloomberg) — Goldman Sachs Group Inc. posted record earnings as revenue from trading and stock underwriting reached all-time highs less than a year after the firm took $10 billion in U.S. rescue funds. [TARP]
Second-quarter net income was $3.44 billion, or $4.93 a share, the New York-based bank said today in a statement. That surpassed the $3.65 per-share average estimate of 22 analysts surveyed by Bloomberg and was 65 percent higher than last year’s second quarter.
Chief Executive Officer Lloyd Blankfein, after repaying the government’s bailout money along with $426 million in dividends to taxpayers, is reverting to a business model analysts deemed irretrievably broken during the global credit crisis. While rivals including Morgan Stanley have pared risks, Goldman Sachs has increased them this year. …
Last year’s credit freeze led Blankfein to convert the firm to a Federal Reserve-regulated bank, accept government funds and report the first quarterly loss as a public company. This year Goldman Sachs has issued new shares, repaid the U.S. Treasury and reaped higher fees from selling stocks and bonds. [snip]
Let’s review shall we?
1. Last year the chief rivals of Goldman Sachs, Lehman Brothers and Bear Sterns “too big to fail”, were mysteriously allowed to fail.
Representative Maxine Waters questioned whether Goldman Sachs was a part of the decision making in this process, to which she got no answer. [say what you might about Representative Waters, she’s the only one on the Hill, even asking such questions. I’m sure her legs will be broken soon, and she’ll be found floating down the river with cement shoes shortly.]
2. So last Monday Goldman Sachs reported record quarterly earnings.
This is like your friend coming over, finding your stash of marijuana, smoking it all, then when you walk in, brags how high he is, the best high ever. What?
3. AIG paid out $13 billion last year to Goldman Sachs in a naked derivative agreement or collateral debt obligation [CDO], as money owed, from the TARP money we loaned AIG.
First of all AIG was bankrupt and this payback to Goldman Sachs was as tenuous as a marriage proposal to a one night stand. AIG could have paid its real creditors first and not Goldman Sachs [ever] Also AIG should never have paid 100 cents on the dollar to Goldman Sachs, especially when they were in a bankrupt situation.
[Goldman Sachs was the highest contributor to Barrack Obama’s campaign. $989,000. I’ll say that’s a cheap investment for a $13 billion return.]
4. After selling CDOs to such institutions like AIG, Goldman Sachs bet against the CDOs in a credit default swap.
I’m not saying they knew the CDOs were bad paper, but… cds hedge against them? Come on, does it take a rocket scientist to figure this out? And yet, still no indictments.
This list which was put together by Neel Kashkari, named bailout czar, former Goldman Sachs executive, put in place by Secretary of the Treasury Hank Paulson, former Goldman Sachs CEO.
Wait isn’t the company 137 years old? Why in a matter of a couple of months would it change it’s entire company?
6. [per Max Keiser] Goldman Sachs was involved in front running and front ran all trades on the NYSE floor and should be under investigation, and jailed.
So when they report record quarterly earnings… DUH