|
Country
1000+ Penny Miser Member
USA
3121 Posts |
 Posted - 07/14/2009 : 18:37:34
|
Since converting to a bank holding company last year, Goldman is under tighter scrutiny from regulators. That has limited the amount of leverage Goldman can take on when betting on securities and other financial products. But, as Tuesday's stellar earnings show, the bank is still taking plenty of risks and, at least so far, reaping huge rewards.
The lowdown on how Goldman dazzled Wall Street. Goldman became a bank holding company as a result of the 2008 meltdown. Since they were a bank holding company they were eligible to get $28 Billion from our government as part of the bailout programs. Guess what they did with that $28 Billion? They lent it out at much higher rates, probably with leverage (not 44 to 1, but maybe 13 to 1 leverage), making big profits since their competition was only Morgan Stanley. In essence, Goldman made a lot of money as a result of taxpayer bailout money. Where's our cut?  |
---> Come to the new and improved realcent: http://realcent.org
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
– Theodore Roosevelt
|
 |
|
As some big banks hobble on, Goldman Sachs dazzles
Forum Locked
