Goldman Sachs came out with stunning results. Is there something to see what the eyes cannot see?
Well the profits have come (nothing unusual) from trading and merchant banking. GS of course quickly converted itself into a Bank – when it saw the fall of its friend and competitors – like Bear Sterns and Lehman Brothers. And it got a bail out of US $ 10 billion (remember Ratan Tata is asking the UK government – for a far lesser amount.
Be that as it may, GS profits come from – derivative trading, credit risk derivates and the likes. Will there be any investigation into GS being too big to fail (OK, GM has failed and 60% of the company is owned by the funder who will call the tune, but no such luck at GS). Credit swap derivative market is becoming too easy to manipulate – easy low hanging fruits! Then is the compensation pattern of GS – nothing changes if they repay all the bailout money.
Surely there is something which is not meeting the eye
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