Finance NetNet


  Thursday, 14 Apr 2011 | 1:12 PM ET

How Goldman Trades on Client Info

Posted By: John Carney
The Goldman Sachs booth on the floor of the New York Stock Exchange
Getty Images
The Goldman Sachs booth on the floor of the New York Stock Exchange

Goldman is often accused of being “ruthlessly self-serving” in its dealing with clients. Goldman, of course, maintains that it is still dedicated to serving its clients.

Unfortunately for Goldman, the report from the Senate investigations committee includes crystal clear evidence of its traders being, well, ruthlessly self-serving.

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  Thursday, 14 Apr 2011 | 11:47 AM ET

Did Lloyd Blankfein Misunderstand Goldman's Mortgage Bets?

Posted By: John Carney
Goldman Sachs CEO Lloyd Blankfein
Goldman Sachs CEO Lloyd Blankfein

Goldman Sachs CEO Lloyd Blankfein and other top executives at the firm may not have understood the positions they were taking in the mortgage market, according to a report released today by the Senate Investigations subcommittee.

The report —which runs to 635 pages—details how Goldman built up a massive short position in mortgage-related assets following the collapse of two subprime Bear Stearns hedge funds. This was referred to as “the big short” within Goldman.

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  Thursday, 14 Apr 2011 | 11:31 AM ET

How Goldman Concealed Risk From Shareholders

Posted By: John Carney
Goldman Sachs
Getty Images
Goldman Sachs

When Goldman Sachs was making breathtaking gains as the subprime mortgage market collapsed in 2007, one of the most mysterious aspects of the trade was how Goldman could do this without appearing to dramatically raise the risks it was taking.

The Senate investigation committee’s report issued Thursday shows how this was accomplished: two weeks before the quarter ended, Goldman’s top executives would order the mortgage trading desk to reduce its risk. Because the mortgage desk was responsible for the majority of the firm’s risk—54 percent in August of 2007—this reduced firmwide risk. Goldman would then report lower risk in its quarterly reports.

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  Thursday, 14 Apr 2011 | 9:48 AM ET

Senator Levin Says He'll Refer Goldman Testimony From Last Year's Congressional Hearing to The DOJ For Possible Perjury Charges

Posted By: Katya Wachtel, Business Insider
Goldman Sachs CEO Lloyd Blankfein
Jim Watson | AFP | Getty Images
Goldman Sachs CEO Lloyd Blankfein

We can't say we're surprised that a Senate report released yesterday, that details what caused the financial crisis, focuses on Goldman Sachs. A lot.

The findings of a two-year analysis "trains much of its ire on Goldman Sachs, which Sen. Levin said deceived some clients by betting against home loans in 2006 and 2007, while simultaneously selling mortgage securities," the WSJ reported.

But Levin thinks Goldman deceived more than its investors.

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  Thursday, 14 Apr 2011 | 9:24 AM ET

'Bankers Running Rings Around Regulators'

Posted By: Julia La Roche

'Bankers Running Rings Around Regulators' ['s Patrick Allen]

Senator Levin blasts Goldman Sachs saying the bank 'Misled Congress After Duping Clients' [Bloomberg]

'Senate Report Lays Bare Mortgage Mess' [WSJ] "Some call the concept of owning a home the American dream. Wall Street bankers called is something different: 'Pigs.' 'Crap.' A 'white elephant, flying pig and unicorn'."

Jobless claims rise unexpectedly [ via Reuters]

Massive recall of more than a million Ford F-150 trucks.

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  Wednesday, 13 Apr 2011 | 5:01 PM ET

From the Poppyfields of Mexico to the Mortgage Deals of Bear Stearns

Posted By: John Carney
  Wednesday, 13 Apr 2011 | 3:07 PM ET

Here's the REAL Reason People Like Peter Thiel Say You Shouldn't Go to College

Posted By: Joe Weisenthal, Business Insider
Image Source | Getty Images

Our colleague Pascal-Emmanuel Gobry has been chronicling the latest comments from investor and entrepreneur Peter Thiel, who has described college spending as a gigantic bubble, and who is of the belief that a lot of people who currently go to college actually shouldn't waste the time.

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  Wednesday, 13 Apr 2011 | 1:55 PM ET

Spam Scammmers Now Turn to Middle East Turmoil

Posted By: John Carney

These guys are always innovative.

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  Wednesday, 13 Apr 2011 | 12:51 PM ET

Socially Responsible Investor Coalition to BP: Your Annual Report Is Incomplete

Posted By: Lori Ann LaRocco

Less than a week before the one year anniversary of the BP Deepwater Horizon disaster, the oil giant will be holding its annual meeting. The MMA Praxis Mutual Funds, a "socially responsible" investor group that owns shares of BP, is advocating that shareholders abstain or vote against the company's annual report and directors who are members of BP's Safety, Ethics and Environmental Assurance Committee.

I caught up with Mark Regier director of stewardship investing at MMA Praxis Mutual funds, ahead of this meeting.

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  Wednesday, 13 Apr 2011 | 11:52 AM ET

Woman Who Complains She Is Too Hot for Finance Gets Advice

Posted By: Cadie Thompson
Jutta Klee | Getty Images

Remember the girl who believed she wastoo hot for finance and sought advice from the Financial Times columnist Lucy Kellaway on how to deal with her good looks in the workplace?

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