Wednesday, July 15, 2009

Goldman Gains on Rivals' Pain

Wow, WSJ explains what is behind Goldman's record profits:

Wall Street's meltdown fueled the most profitable quarter ever at Goldman Sachs Group Inc., which snatched business away from weakened rivals and churned out huge trading gains by revving up risk taking.

With competitors such as Lehman Brothers Holdings Inc. and Bear Stearns Cos. gone, and others like Citigroup Inc. flailing, Goldman appears to be pulling off one of the biggest market-share grabs in Wall Street history...The primary earnings driver was wider profit margins on the buying and selling of securities, in part due to fewer competitors...

The gains -- net revenue was up 46% to $13.76 billion -- bolster Goldman's reputation as one of the savviest on Wall Street.

They also underscore the emergence of a handful of large U.S. financial institutions that are likely to profit mightily from the wreckage left by the financial crisis.

Of course, it was former Goldmanite Hank Paulson as Treasury Secretary that was largely responsible for the takedown of Lehman and Bear Stearns, while Goldman WAS BAILED OUT WITH GOVERNMENT (Read Taxpayer) MONEY.

1 comment:

  1. The really beautiful thing in this day and age is that thanks to the internet, few crimes go unnoticed anymore.....