Goldman: It’s time to close out those gold shorts
NEW YORK–Goldman Sachs Group Inc. GS +0.58% on Tuesday closed its recommendation to “short” gold, telling clients to exit bets on lower gold prices.
The bank had told its clients to bet on lower gold prices April 10, slashing its short- and long-term gold forecasts as prices dangled above bear-market territory at $1,588.30 an ounce.
At the time, analysts Damien Courvalin and Jeffrey Currie [...]
China’s deadly bird-flu outbreak is rippling through industries from restaurants to travel, adding economic headwinds after last quarter’s unexpected slowdown.
The disease “may suppress domestic consumption in the near term,” Goldman Sachs Group Inc. said in a report this week. Ding Shuang, a Citigroup Inc. economist in Hong Kong, sees a danger of “short-term volatilities” in growth and inflation and of bigger effects if found to transmit between humans.
The outbreak, [...]
The big banks are breathlessly proclaiming that now is the time to sell your gold. They are warning that we have now entered a “bear market” for gold and that the price of gold will continue to decline for the rest of the year. So should we believe them? Well, their warnings might be more credible if the central banks of the world were not hoarding gold like crazy. During [...]
Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) is poised to become one of Goldman Sachs Group Inc. (GS)’s largest shareholders without paying anything after the companies agreed on a plan to settle warrants granted at the height of the 2008 financial crisis.
Berkshire had the right to buy 43.5 million Goldman Sachs common shares for $115 apiece until Oct. 1. Under a deal announced by the companies today, Buffett’s firm will get Goldman Sachs stock [...]
Everyone keeps buying record amounts and the price keeps going down. Something is afoot !
South Korea joined Russia and Kazakhstan in boosting gold holdings, even as the metal had its worst start to a year since 1991 and billionaire investor George Soros cut his stake in the biggest bullion exchange-traded fund.
The Bank of Korea added 20 metric tons in February, raising its gold reserves by 24 percent to 104.4 tons, [...]
(CNSNews.com) – President Barack Obama won’t have to worry about his paycheck if the spending sequestration included in the Budget Control Act that he signed into law in 2011 begins taking effect this Friday.
A report published last month by the Congressional Research Service–“Budget Sequestration and Selected Program Exemptions and Special Rules”–identifies certain programs that are exempt from sequestration and lays out special rules that govern the sequestration of others.
Section 255 of the Budget [...]
Investor Jim Rogers joined Bill Gross, who runs the world’s biggest bond fund, in warning that a rout that sent Treasurys to their biggest loss last month in almost a year probably isn’t over.
The list of bond bears is growing after Goldman Sachs Group Inc. and Wells Capital Management Inc. also voiced concern. While unemployment rose in January, Labor Department revisions showed job gains at the end of last [...]
Goldman Sachs Group Inc. (G) has been hired by the Russian government to burnish the nation’s image overseas and attract more institutional investors.
The bank has signed a three-year agreement with the Economy Ministry and the Russian Direct Investment Fund to advise on issues such as communicating government decisions and setting up meetings with investors, according to Sergei Arsenyev, Goldman Sachs’s managing director of investment banking in Moscow.
“The pool of investors that Russia talks [...]
Warren Buffett, the billionaire investor who oversees stakes in some of the largest U.S. banks, said the nation’s lenders have rebuilt capital to the point where they no longer pose a threat to the economy.
“The banks will not get this country in trouble, I guarantee it,” Buffett, chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc. (BRK/A), said in a phone interview last week. “The capital ratios are huge, the excesses on the [...]
Sitting onstage in Washington’s Ronald Reagan Building in July, Lloyd C. Blankfein saidGoldman Sachs Group Inc. (GS) had stopped using its own money to make bets on the bank’s behalf.
“We shut off that activity,” the chief executive officer told more than 400 people at a lunch organized by the Economic Club of Washington, D.C., slicing the air with his hand. The bank no longer had proprietary traders who “just put on risks that [...]
Goldman Sachs Group Inc. has urged the U.S. Supreme Court to throw out a mortgage securities class-action lawsuit that it said could cost Wall Street tens of billions of dollars.
The bank is challenging a September 6 decision by the 2nd U.S. Circuit Court of Appeals in New York allowing the lawsuit, which accuses it of misleading investors about the securities’ risks.
That court let the NECA-IBEW Health & Welfare Fund, which [...]
The career path for aspiring Gordon Gekkos is getting rockier.
Goldman Sachs Group Inc. GS +2.06% is doing away with two-year contracts for most analysts hired out of college, according to communications reviewed by The Wall Street Journal and confirmed by a Goldman spokesman. Analysts also won’t get bonuses for completing the program, which has been around for a quarter of a century and has been viewed as a meal ticket to a lucrative [...]
Federal Reserve Chairman Ben S. Bernanke is betting the new U.S. economy is the same as the old one as he lays out arguments for more stimulus to revive it.
He made that diagnosis last week in a rebuttal to those who blame an 8.3 percentunemployment rate on structural shifts in the economy wrought by the financial crisis and who contend joblessness is permanently elevated.
“I see little evidence of substantial structural change in recent years,” [...]
Apartment owners at Manhattan’s 15 Central Park West, home to Goldman Sachs Group Inc. (GS) Chief Executive Officer Lloyd Blankfein and the musician Sting, are seeking to double their investments after the complex shattered price records and sparked a wave of ultra-luxury listings.
Four condos have hit the market since May with asking prices at an average 192 percent premium over what owners paid in 2007 and 2008, according to [...]
Fri Aug 10, 2012 12:04am EDT
(Reuters) – U.S. regulators directed five of the country’s biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.
According to documents obtained by Reuters, the Federal Reserve and the U.S. Office of the Comptroller of the Currency first directed five banks [...]
WASHINGTON, Aug 9 (Reuters) – Neither Goldman Sachs Group
Inc nor its employees will face U.S. criminal charges
related to trades they made during the financial crisis that
were highlighted in a 2011 U.S. Senate report, the Justice
Department said on Thursday.
Goldman Sachs Group Inc. (GS), the fifth- biggest U.S. bank by assets, cut its holdings of Italian sovereign debt by 92 percent in the second quarter after boosting them in the first three months of the year.
“Market exposure” to Italian government bonds fell to $191 million at the end of June from $2.51 billion at the end of March, the New York-based firm said in a quarterly regulatory filing today. Goldman Sachs also increased [...]
Stockpiles of the biggest crops will decline for a third year as drought parches fields across three continents, raising food-import costs already forecast by the United Nations to reach a near-record $1.24 trillion.
Combined inventories of corn, wheat, soybeans and rice will drop 1.8 percent to a four-year low before harvests in 2013, the U.S. Department of Agriculture estimates. Crops in the U.S., the biggest exporter, are in the worst condition since 1988, heat waves [...]
By Greg Morcroft, MarketWatch
This update corrects the FactSet estimate for Goldman’s second-quarter earnings per share.
NEW YORK (MarketWatch) — Goldman Sachs Group Inc. will take center stage Tuesday when the Wall Street investment bank posts second-quarter earnings that are expected to show continuing strains on the global financial-services business.
Recent reports from some of the nation’s biggest banks have been market catalysts lately, with J.P. Morgan Chase & Co.’s results [...]
JPMorgan Chase & Co. (JPM), Goldman Sachs Group Inc. and BlackRock Inc. (BLK) closed European money market funds to new investments after the European Central Bank lowered deposit rates to zero.
JPMorgan, the world’s biggest provider of money-market funds, won’t accept new cash in five euro-denominated money- market and liquidity funds because the rate cut may result in losses for investors, the company said in a notice to shareholders. Goldman Sachs won’t accept new money in its GS Euro [...]
SEC Said to Authorize Lawsuit Against Harbinger’s Phil Falcone
By Katherine Burton and Joshua Gallu
Philip Falcone, the billionaire founder of Harbinger Capital Partners LLC, faces a lawsuit from U.S. regulators as soon as this week over claims he improperly borrowed client funds to pay his taxes and gave preferential treatment to Goldman Sachs Group Inc., according to two people familiar with the matter.
Falcone, 49, may also face a market manipulation claim [...]
“Several major U.S. banks, including J.P. Morgan Chase, Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., and Morgan Stanley, are preparing for the possibility of a downgrade by Moody’s Investment Service that could come by the end of this week, the Wall Street Journal reports.”
Bloomberg is predicting a two-notch downgrade for Bank of America and Citibank to one level above “junk” status.
“Bank of America, Citigroup, Goldman, Morgan [...]
JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon plans to testify before Congress this week about his firm’s $2 billion trading loss. His Wall Street colleagues don’t understand why.
“Occasional losses are inevitable,” said Blackstone Group LP (BX)’s Stephen A. Schwarzman, 65, CEO of the largest private- equity firm. “Publicly excoriating JPMorgan serves no purpose except to reduce people’s confidence in the financial system.”
Publically excoriating [insert criminal act here] serves no [...]
Banks, bond issuers and investors are bracing for aftershocks from a wave of bank downgrades expected to hit the U.S. as soon as the coming week.
Moody’s Investors Service has said it is likely to reduce by the end of June credit ratings for 17 large global banks, including five of the six biggest U.S. financial firms by assets. The downgrades are expected to raise borrowing costs and crimp some lucrative [...]
Gold is stuck in the longest slump in a decade as investors shun bullion for the dollar and bonds, just seven months after Bank of America Corp. said Europe’s debt crisis would send prices to a record $2,000 an ounce.
The bank was joined by Goldman Sachs Group Inc., Morgan Stanley and Barclays Plc in urging investors to buy in December and January. Now, after gold fell 10 percent in [...]
Do you want to know the real reason banks aren’t lending and the PIIGS have control of the barnyard in Europe?
It’s because risk in the $600 trillion derivatives market isn’t evening out. To the contrary, it’s growing increasingly concentrated among a select few banks, especially here in the United States.
In 2009, five banks held 80% of derivatives in America. Now, just four banks hold a staggering 95.9% of U.S. derivatives, according to a recent report [...]
Think Wall Street is the land of plenty when it comes to compensation? Think again. If 2011 pay to top executives is a window into the Wall Street compensation machine, then compared with other industries — the entertainment media, for instance — the bloom is definitely off the rose.
In 2011, the best-paid Wall Street chief executive officer was Jamie Dimon at JPMorgan Chase & Co. (JPM) He got $23 million in total compensation. John Stumpf [...]
NEW YORK (MarketWatch) — And on the third day, the market wailed, the shares rose and the lawyers sued.
So went the morning trading session on the Wednesday after Facebook-pocalypse. As the trading session reached the midway point, Facebook Inc. FB +3.23% shares showed a 3.7% gain. It was a minor relief to those who bought the initial public offering near its offering price of $38. After all, the bleeding [...]
May 22, 2012
The fact Morgan Stanley was the lead banker on the Facebook IPO should have set off alarm bells for investors in the NASDAQ casino. The deal had SUCKER’S BET spray-painted all over it. But like the infamous dot-com bubble and any other number of pump and dump schemes rolled out by the banksters, the Facebook IPO was designed to enrich a small number of insiders like Goldman [...]
Chinese Premier Wen Jiabao said the government will focus more on bolstering economic growth, indicating policies may be loosened further as inflation moderates.
“The country should properly handle the relationship between maintaining growth, adjusting economic structures and managing inflationary expectations,” Wen said during a tour of Wuhan, the capital of China’s Hubei province, from Friday to Sunday.
“We should continue to implement a proactive fiscal policy and a prudent monetary policy, while giving more priority [...]
Serena Saito, Bloomberg
May 19 (Bloomberg) – Morgan Stanley, the lead underwriter in Facebook Inc.’s initial public offering, stands to take a hit from a stock market debut that stoked disappointment among investors in the largest social network.
The bank stepped in to prop up the stock from dipping below its $38 IPO price yesterday, said people with knowledge of the matter, who asked not to be identified because the purchases were private. Morgan Stanley, based in [...]
As the banksters are in difficulties with their gambling derivatives and exposed to bets gone wrong in Europe, maybe they’ll be asking for a Facebook bailout next:
NEW YORK (Dow Jones)–Lead underwriter Morgan Stanley (MS) received about 38% of the shares in Facebook Inc.’s (FB) initial public offering to distribute to investors, while Goldman Sachs Group Inc.’s (GS) allotment was roughly 15%, according to people familiar with the situation.
Morgan Stanley was [...]