Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

UK Telegraph: Goldman Sachs to reveal $3bn hit

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-15-08 09:24 PM
Original message
UK Telegraph: Goldman Sachs to reveal $3bn hit
Goldman Sachs to reveal $3bn hit
By Mark Kleinman and Louise Armitstead
Last Updated: 12:07am GMT 16/03/2008

Goldman Sachs, Wall Street's most powerful investment bank, will this week announce asset writedowns worth about $3bn (1.5bn), its biggest jolt to date from the crisis threatening to engulf the world's financial markets.

Goldman, which has largely thrived amid the turmoil elsewhere on Wall Street, is expected to report a fall in first-quarter earnings of about 50 per cent. The writedown will underline how the financial turbulence is now affecting even the most stellar performers.

The bank's $3bn writedown will be based partly on the declining value of its 4.9 per cent stake in Industrial & Commercial Bank of China (ICBC), which is held separately on Goldman's balance sheet. The share price of ICBC, which conducted the world's biggest ever initial public offering in 2006, has fallen by about 14 per cent in recent months.

Goldman invested $2.3bn for its minority shareholding in ICBC, which is listed on the Hong Kong and Shanghai stock exchanges.

Goldman will also take a hit of about $1.6bn in its leveraged loans business, which has seen a marked decline in recent months amid a dearth in demand for trading bank debt. A further $1.1bn will be written down in connection with assets owned by Goldman's principal investment area, the bank's private equity arm.

Despite the multi-billion dollar hit, Goldman will point to the fact that its exposure to the deteriorating mortgage market remains minimal, according to people close to the bank. .....(more)

The complete piece is at:

Printer Friendly | Permalink |  | Top
ThomWV Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-15-08 09:48 PM
Response to Original message
1. So about 1 year's worth of CEO pay is what its about then?
Printer Friendly | Permalink |  | Top
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Sun Apr 30th 2017, 02:58 AM
Response to Original message
Advertisements [?]

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC