Goldman & The Case Of The 'Missing' December
More in BUSINESS NEWS
back-up- Top Firms Finally Hit By H1N1 Threat
- Top Firm Caught Out By Rogue Traders
- 'It's Not As If They Paid Great Bonuses In The First Place!'
- Top Firm Chain Letter
- Sisters Are Doing It For Themselves
- Dear All - 'I Am Not Interested' In Bank of America Job
- Bank of America, BNP Paribas, Goldman, JPMorgan, Galleon Group
- Old Traders Never Die - The Seance
- Click Here To Register For Free News E-Mail Alerts
- Speculation Mounts About Goldman's Bonus Plans
- Top Boss Tells Church Crowd 'Profit Is Not Satanic'
- Your Views On Bonuses (Poll Results)
- Bank of America 'Is Not A Monarchy'
- Bankers Will Have The Last Laugh On Pay
- 'There Aren't Many People Who Think Charlotte Is A Major Financial Center'
- Top Firm Delivers 'Another Big Disappointment'
- Bank Of America CEO Poll - Incredible Result
- Scruffy Civil Servant Warns Tax Dodgers
- BofA Said To Have Got Another Turn-Down
- Interview With Bernie Madoff
- Top Firm Dismisses Talk Of Further $10bn Writedown
- The Average British Soldier
- Top Firm Puts More Aside For Staff Compensation
- Firms On Alert As Insect 'Infestation' Crashes PC Networks
- Register Now For Free 'Old Traders Never Die' Updates
- Secretary Geithner's Written Testimony On Reform Of Financial System
- ISITC Europe Successfully Introduces New Operating Structure
- Dumb & Dumber - Incredible Details About Lehman Weekend Revealed
- The Cityboy Column
- The Man Bank of America Should Hire As CEO (But Won't)
- Goldman Needs To Give Away $1bn
- Top Firms Said To Have Lost $400m On Hedge Fund
- H1N1 Flu - Have You Got It ? (Quick Test)
- H1N1 Bank Call Center Transcript (You Couldn't Make It Up)
- 'It's Just No Fun Anymore!'
- Top Firm CEO Says He Won't Poach Staff From Rivals
- 'I Hate Recruitment Consultants' - Reader Comments
- Bohemian Bankruptcy
- 'I Hate Recruitment Consultants'
- Mack Attack - The Moment Big John Hit Back
- Compliance Training ? 'The Biscuits Were Good'
- Banker, Hire Thyself
- IT Recruitment - The Smart Way
- And Wall Street's Top Athlete Is...........
- John Mack On Saving Morgan Stanley
- Bankers Taught How To Be Killing Machines
- Banks Given Five More Days To Justify Bonuses
- Billionaire Madoff Investor Found Dead In Swimming Pool
- Top Bailed-Out Execs Averaged $18m Each In 2008
- The Vic Daniels Column - 26/10/09
Related Content
- Firm Wins Bonus Case (22/10/2009)
- More Goldman Nonsense (09/08/2009)
- Geithner For Goldman ? Surely Not! (19/09/2009)
- Nuns Have A Pop At Goldman (15/10/2009)
- Goldman Sachs Must Fail (18/10/2009)
- Goldman Needs To Give Away $1bn (29/10/2009)
The main issue is that, due to a change from fiscal-year reporting to year-end reporting (the firm has adopted the more familiar reporting model now that it has become a bank holding company), Goldman effectively reported earnings for two periods Tuesday - January - March 2009 and December 2008. And as all focus naturally fell on the spectacular Q1 09 figures, the fact that the firm reported a $1.3bn pretax loss in December originally got lost in all the euphoria. Richard Bove, the respected Rochdale Research bank analyst said in a note that: 'By separating the two periods, Goldman was able to blunt the impact of $2.3bn in asset writedowns over the two time frames.
In addition, The Wall Street Journal points out that Fox-Pitt Kelton analyst David Trone has suggested that the record revenues seen in Q1 09 in the firm's fixed income, currencies and commodities division were most likely helped by a large pay-out from AIG in respect of guarantees for credit default swaps. Trone also says that 'the rest of (Goldman's) results were well below expectations across investment banking, equities trading, asset management, and securities services'.
Whatever the analysts think, one thing seems certain - Goldman is determined to get the US government monkey off its back as soon as possible. CFO David Viniar said Tuesday: 'It's important to run our business the way it ought to be run'. He said that it is vital for the firm 'to be able to compensate deserving executives with bonuses much larger than those currently allowed by regulators', and that it wants to be free to bring in talented professionals on skilled foreign worker visas (something it is prohibited from doing while taking the TARP).
Please use the 'E-Mail' button immediately under the article title to send this item to a friend.
Please use the 'E-Mail' button immediately under the article title to send this item to a friend.
