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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-15-09 05:50 AM
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21.  Goldman amasses $164bn war chest

Goldman Sachs has amassed a war chest of $164bn in cash and liquid assets that could be used to buy distressed securities and loans as its rivals clear their balance sheets, Goldmans chief financial officer said on Tuesday.

David Viniar spoke as the bank completed the sale of $5bn in common stock at $123 per share which it plans to use to pay back some $10bn from the governments troubled asset relief programme.

The sale price represented a 5.5 per cent discount to Mondays close. Goldmans shares closed down more than 11 per cent at $115.11.

Other banks were weaker too, with Morgan Stanley down 12 per cent as investors speculated it could raise funds when it announced results next week.

Morgan Stanley declined to comment.

Speaking a day after Goldman reported $1.81bn in first-quarter earnings, Mr Viniar said the banks liquid assets, which rose more than $50bn in the first quarter, could also be put to defensive use if the crisis worsened.

Goldmans earnings were helped by a record $6.5bn in revenues in fixed income, commodities and currencies (FICC) activities. It made money taking advantage of the wide difference between buying and selling prices in those markets.

The environment in the first quarter was such that . . . there were so many opportunities in truly liquid assets that there was no need to use liquidity to buy illiquid assets and there werent a lot of good illiquid assets for sale, Mr Viniar said, adding that strong liquidity made sense from a defensive and offensive point of view.

He acknowledged the liquidity position was a drag on profits, but said in the current environment prudence is the better path. But he noted activity in the capital markets was gaining momentum, pointing to two dozen equity offerings last week.

In an interview with the Financial Times, Mr Viniar said Goldman wanted to pay back the $10bn in Tarp funds as soon as possible so it could pay bankers, invest abroad and hire foreign workers without generating criticism it was using taxpayer money for such purposes.

However, Mr Viniar told investors that repaying Tarp would still allow Goldman to keep issuing government-guaranteed debt.

Its important to run our business the way it ought to be run, he said. Not only is it important to be able to compensate deserving executives with bonuses much larger than those currently allowed by regulators, he said, but we dont want to have to worry about who we hire with an H-1B visa (for skilled foreign workers).


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  -STOCK MARKET WATCH, Wednesday April 15 ozymandius  Apr-15-09 04:47 AM   #0 
  - Market WrapUp  ozymandius   Apr-15-09 04:49 AM   #1 
  - Interesting read of Barbera today....  KoKo   Apr-15-09 08:26 AM   #56 
     - "The farmers say, I don't know why, that we will have a warm July"  Demeter   Apr-15-09 08:31 AM   #58 
        - Speaking of the Weather, that November that was on backorder has arrived  Demeter   Apr-15-09 08:32 AM   #59 
  - Today's Avalanche of Reports  ozymandius   Apr-15-09 04:52 AM   #2 
  - April Empire State index @ -14.7 - March core CPI up 0.2% - March CPI down 0.1%  UpInArms   Apr-15-09 08:16 AM   #52 
  - U.S. factory output down 15.7% in recession, 63-year low  UpInArms   Apr-15-09 09:00 AM   #66 
  - Petroleum Inventories Report - crude inventories rise 5.6 million barrels  UpInArms   Apr-15-09 10:04 AM   #87 
  - U.S. April home builders' index jumps to 14 from 9  UpInArms   Apr-15-09 12:17 PM   #94 
  - Oil prices rise above $50 despite demand concerns  ozymandius   Apr-15-09 04:56 AM   #3 
  - If You're Going to Post Scary Pictures Like That, I'm Staying In Bed  Demeter   Apr-15-09 04:58 AM   #4 
  - I was face-to-face with that horrific maze of numbers and lines yesterday.  ozymandius   Apr-15-09 05:03 AM   #7 
  - Hey! This is just a swipe at the SMW Economic Index!  Hugin   Apr-15-09 08:42 AM   #62 
     - I think I'm looking forward to seeing it.  Dr.Phool   Apr-15-09 09:04 AM   #69 
        - I always enjoy taking a Supermodel out for a spin.  Hugin   Apr-15-09 09:17 AM   #77 
  - UBS cuts 8,700 more jobs  ozymandius   Apr-15-09 04:59 AM   #5 
  - U.S. planning to reveal data on health of top banks: report  Demeter   Apr-15-09 05:03 AM   #6 
  - Oh, I bet those numbers and words are getting the Greenscam treatment.  ozymandius   Apr-15-09 05:08 AM   #9 
  - US Decides to Disclose (Some) Results From Stress Tests  ozymandius   Apr-15-09 05:38 AM   #17 
  - Yahoo to cut hundreds of jobs: source  ozymandius   Apr-15-09 05:05 AM   #8 
  - Reminder: Goldman disappeared December!  ozymandius   Apr-15-09 05:15 AM   #10 
  - Did Goldman Sachs Just Call The Top Of The Market?  DemReadingDU   Apr-15-09 06:26 AM   #35 
     - Something smelly was going on from Day 1.  Dr.Phool   Apr-15-09 07:12 AM   #43 
        - that leaked Citi rumor started a rally  DemReadingDU   Apr-15-09 07:26 AM   #45 
  - Older Borrowers, Out in the Cold  Demeter   Apr-15-09 05:17 AM   #11 
  - In Texas.....  AnneD   Apr-15-09 09:24 AM   #78 
  - jail and hell are too good for these criminals  UpInArms   Apr-15-09 01:07 PM   #102 
  - Obama hints at hopes for recovery  Demeter   Apr-15-09 05:27 AM   #12 
  - WE WILL NOT HAVE A SUSTAINABLE RECOVERY UNTIL  Tansy_Gold   Apr-15-09 06:46 AM   #39 
  - The Fudd's turd resents that comparison!  Dr.Phool   Apr-15-09 07:13 AM   #44 
  - All apologies to the Fudd but I have four dogs that I dearly love.  Tansy_Gold   Apr-15-09 07:54 AM   #49 
  - You're right Tansy  janedum   Apr-15-09 08:34 AM   #60 
     - Ya know, there's an old joke about two envelopes  Tansy_Gold   Apr-15-09 08:45 AM   #63 
        - That was nasty!  Demeter   Apr-15-09 09:07 AM   #71 
           - Well, the thing is,  Tansy_Gold   Apr-15-09 09:10 AM   #73 
  - Is this the whole article???  MattSh   Apr-15-09 07:05 AM   #42 
     - Oooops! I was so incensed  Demeter   Apr-15-09 07:35 AM   #47 
        - Well, I asked for the link 'cause I figured "there must be more".  MattSh   Apr-15-09 08:08 AM   #50 
           - True  Demeter   Apr-15-09 08:15 AM   #51 
              - or it could be  Tansy_Gold   Apr-15-09 08:23 AM   #55 
                 - Morning Tansy! Never Knew Propaganda That Wasn't  Demeter   Apr-15-09 08:30 AM   #57 
                 - Tansy Tansy.....  AnneD   Apr-15-09 12:47 PM   #101 
                    - Actually --  Tansy_Gold   Apr-15-09 01:15 PM   #103 
                       - True....  AnneD   Apr-15-09 02:06 PM   #109 
  - Unrelated aside to the thread: you really need to see this. Really, you do.  ozymandius   Apr-15-09 05:29 AM   #13 
  - Thanks Ozy!  Demeter   Apr-15-09 05:34 AM   #15 
  - Ms. Boyle is amazing, isn't she?  ozymandius   Apr-15-09 05:43 AM   #19 
     - saw it the other night  radfringe   Apr-15-09 06:13 AM   #25 
     - May all her dreams come true.  Karenina   Apr-15-09 10:14 AM   #88 
  - I thought for a moment even Simon might give her a standing ovation.  tclambert   Apr-15-09 06:24 AM   #33 
  - Plucked from GD -- A must-read to follow a must-watch  Tansy_Gold   Apr-15-09 12:43 PM   #100 
     - I feel compelled to defend the laughing skeptics.  tclambert   Apr-15-09 02:19 PM   #110 
     - I think you've just made the point, though, that we do expect  Tansy_Gold   Apr-15-09 03:40 PM   #118 
        - Now, no one expects the blond beauty to be competent.  tclambert   Apr-15-09 04:38 PM   #123 
     - She made me tear up four times today.  ozymandius   Apr-15-09 06:26 PM   #125 
  - Watch it. watch it. WATCH IT.  Tansy_Gold   Apr-15-09 06:30 AM   #36 
  - I saw that on the news last night  DemReadingDU   Apr-15-09 07:31 AM   #46 
     - I can't wait to see Ms Boyle.....  AnneD   Apr-15-09 04:02 PM   #120 
  - Banks warned over assets held by subsidiaries  Demeter   Apr-15-09 05:30 AM   #14 
  - Debt: 04/13/2009 11,169,978,555,115.48 (UP 252,907,390.98) (Small.)  Festivito   Apr-15-09 05:36 AM   #16 
  - Debt: 04/14/2009 11,172,298,738,031.41 (UP 2,320,182,915.93) (Mostly FICA.)  Festivito   Apr-15-09 08:04 PM   #130 
  - Venture offers charging system for news sites  Demeter   Apr-15-09 05:38 AM   #18 
  - Ahh...David Boies and Ted Olson .....working together...again?  KoKo   Apr-15-09 08:48 AM   #64 
     - Boies is also the guy who screwed up the Florida recount for Gore.  Dr.Phool   Apr-15-09 09:11 AM   #74 
        - yep.....working together again....  KoKo   Apr-15-09 09:57 AM   #85 
        - I watched his televised appearance before the USSC and was  UpInArms   Apr-15-09 10:55 AM   #90 
  - AIG faces probe into role of PR companies  Demeter   Apr-15-09 05:46 AM   #20 
  - Well think about it.  Dr.Phool   Apr-15-09 06:45 AM   #38 
  - Must I? You're Right Of Course  Demeter   Apr-15-09 06:49 AM   #40 
  - Hill & Knowlton - please read this  UpInArms   Apr-15-09 08:40 AM   #61 
  - Goldman amasses $164bn war chest  Demeter   Apr-15-09 05:50 AM   #21 
  - Related to post #10: Bush budgeting lives at Goldman Sachs  ozymandius   Apr-15-09 05:59 AM   #23 
     - I Don't Care How Many Months They Vanished--- $164 BILLION!  Demeter   Apr-15-09 06:02 AM   #24 
        - Plus, the association with AIG is not insignificant as they have portrayed them.  ozymandius   Apr-15-09 06:13 AM   #26 
           - Exactly, Ridholtz and others have been all over this.. and yet  KoKo   Apr-15-09 08:57 AM   #65 
  - Trucker hopes to back pensions with property  Demeter   Apr-15-09 05:52 AM   #22 
  - Interesting how this will play into the Stock Market in the coming  KoKo   Apr-15-09 09:00 AM   #67 
     - Where's the silver lining in all of this? There isn't. We're sooo screwed. n/t  antigop   Apr-15-09 01:31 PM   #104 
        - Did we say "silver lining?" We-e-e-ll, aluminum foil looks kinda silvery.  tclambert   Apr-15-09 02:29 PM   #112 
  - China property prices likely to halve  Demeter   Apr-15-09 06:15 AM   #27 
  - If Spain indicts the Bush six, will that count?  tclambert   Apr-15-09 06:15 AM   #28 
  - If I Were Asked, I'd Say Count 'Em  Demeter   Apr-15-09 06:17 AM   #29 
  - Well, for starters, they can never travel to Spain.  ozymandius   Apr-15-09 06:21 AM   #31 
     - I'd Bet ANY Nation Would Arrest Them  Demeter   Apr-15-09 07:38 AM   #48 
        - Hell, if I were a county sheriff, I would arrest them.  tclambert   Apr-15-09 02:40 PM   #114 
  - Japanese wholesale prices fall  Demeter   Apr-15-09 06:20 AM   #30 
  - Executive charity aims to counter anger  Demeter   Apr-15-09 06:24 AM   #32 
  - At least the path is open in Europe....  KoKo   Apr-15-09 09:10 AM   #72 
  - The robber barons of long ago new the value of class--and paid a pretty penny for it  Demeter   Apr-15-09 09:16 AM   #76 
  - When I saw the phrase "executive charity" . . .  tclambert   Apr-15-09 02:36 PM   #113 
  - Big Banks Increase Foreclosure Activity  Pale Blue Dot   Apr-15-09 06:25 AM   #34 
  - Song for the Day (and Year)  Demeter   Apr-15-09 06:42 AM   #37 
     - The end of the world as we know it.  Dr.Phool   Apr-15-09 07:04 AM   #41 
        - Funny how the audience was all smiles and giggles listening to this song.  tclambert   Apr-15-09 02:47 PM   #115 
        - You might also like this one:  tclambert   Apr-15-09 02:50 PM   #116 
  - dollar watch  UpInArms   Apr-15-09 08:21 AM   #53 
  - GM bonds: Big trouble for small investors  DemReadingDU   Apr-15-09 08:22 AM   #54 
  - Michael Collins: The Money Party  DemReadingDU   Apr-15-09 09:02 AM   #68 
  - Morning Marketeers.........  AnneD   Apr-15-09 09:05 AM   #70 
  - Here It Is, AnneD!  Demeter   Apr-15-09 09:13 AM   #75 
  - Thanks Demeter....  AnneD   Apr-15-09 09:26 AM   #80 
     - I Did. It's Lovely  Demeter   Apr-15-09 09:28 AM   #81 
     - I have a confession...  AnneD   Apr-15-09 12:34 PM   #98 
     - Very nice, thanks for sharing!  DemReadingDU   Apr-15-09 09:32 AM   #82 
     - Really beautiful stuff!!!  Karenina   Apr-15-09 11:07 AM   #91 
  - Very nice....thanks...takes me  KoKo   Apr-15-09 09:59 AM   #86 
  - That was the look and mood we were going for...  AnneD   Apr-15-09 12:38 PM   #99 
  - Very nice. I'm also enjoying this mp3 audio track  Ghost Dog   Apr-15-09 02:25 PM   #111 
  - Good on ya mate....  AnneD   Apr-15-09 03:43 PM   #119 
  - Trippy use of solarization. Very 60s.  tclambert   Apr-15-09 03:04 PM   #117 
     - Also aspects I enjoyed.  ozymandius   Apr-15-09 06:54 PM   #128 
        - It may be considered an 'amateur' production.....  AnneD   Apr-16-09 08:58 AM   #131 
  - Shamelessly Stolen From Larkspur: Economist William Black accuses Obama Admin of breaking the law...  Demeter   Apr-15-09 09:24 AM   #79 
  - Hi Ho Hi Ho  Demeter   Apr-15-09 09:42 AM   #83 
  - Love that cartoon  Warpy   Apr-15-09 09:56 AM   #84 
  - Because of Hurricane Ike....  AnneD   Apr-15-09 04:38 PM   #122 
  - Lambuth University can't make payroll  Pale Blue Dot   Apr-15-09 10:28 AM   #89 
  - and in L.A., Schoolteachers Protest Budget Cuts  DemReadingDU   Apr-15-09 11:27 AM   #92 
  - Cassandra complex.......  AnneD   Apr-15-09 02:00 PM   #108 
  - A friend of mine just called me, to let me know he was gonna stop by.  Dr.Phool   Apr-15-09 11:43 AM   #93 
  - Oh, can't wait to hear the details!  Roland99   Apr-15-09 12:22 PM   #95 
     - He had some fun, and got it all on video tape.  Dr.Phool   Apr-15-09 01:50 PM   #106 
  - And the job news keeps getting better....  Roland99   Apr-15-09 12:25 PM   #96 
  - This warms my heart.  Tansy_Gold   Apr-15-09 12:34 PM   #97 
  - I feel the same way.....  AnneD   Apr-15-09 01:53 PM   #107 
  - Great to hear, Roland. Hope things work out for you! n/t  antigop   Apr-15-09 01:33 PM   #105 
  - Go get Them, tiger!  Demeter   Apr-15-09 04:25 PM   #121 
  - Hey, I was busy yesterday, didn't hear your good news.  tclambert   Apr-15-09 04:49 PM   #124 
  - Again - Good on ya!  ozymandius   Apr-15-09 06:33 PM   #126 
  - End of the day stuff.  ozymandius   Apr-15-09 06:50 PM   #127 
     - That is indeed large volume;  Ghost Dog   Apr-15-09 07:10 PM   #129 

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