Political Discussions
Goldman Sachs to Reap Record Profits
Posted by satijournal • 7/10/09 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: Economy, politics
July 10 (Bloomberg) -- Goldman Sachs Group Inc. is poised to report the largest profit since it set earnings records in 2007, marking the return of a business model that was the envy of Wall Street before the financial crisis devastated competitors and spurred a government bailout.
Chief Executive Officer Lloyd Blankfein, who helped make Goldman Sachs the highest-paying securities firm by wagering capital and fueling the bets with borrowed money, may report the most second-quarter profit per share among the 15 biggest U.S. banks, analysts estimate. While rivals have pared risks, New York-based Goldman Sachs has ratcheted up trading gains and reaped more fees from stock and bond sales, according to Barclays Capital analyst Roger Freeman.
The results come on the heels of a rescue effort that funneled about $200 billion from taxpayers to U.S. financial firms, including $10 billion to Goldman Sachs, after the bankruptcy of Lehman Brothers Holdings Inc. and near-failure of American International Group Inc. ignited concern that the credit contraction might cripple the world economy.
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Freeman, the Barclays Capital analyst in New York, expects Goldman to make $5.93 billion from fixed-income, currencies and commodities trading
www.bloomberg.com/apps/news?pid=20601087&sid=axo2pKtl0rts
Our government threw capitalism out the window and created a situation where it controlled who would fail (Lehman Bros) and who would succeed (Goldman Sachs).
And what the hell are they doing still trading commodities? No wonder gas prices are so high!
User Comments
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Crony-capitalism needs to stop. Someone needs to grow the sack necessary to draw the line in the sand. -
I don't think you people want anything good to happen to any company. Those darn rich people. We are to stupid to make alot of money so might as well destroy those who can.-
Your notion of "Making Money" is flawed. These are people who PRODUCE nothing. They are the equivelent of pit bosses in a casino that the people have (virtually) no choice than to gamble in. "Wealth Creation" occurs when something of utility is produced, any other transaction is merely arbitrage.
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Ok Agit8r I'm sorry that you failed at becoming rich and successful and now are bitter about it. No need to be jealous. This is all Obama ran on.
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It is? Then why didn't I (in my bitterness) vote for him?
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