[A-List] Goldman_Sachs
Suzanne de Kuyper
suzannedk at gmail.com
Thu Apr 12 13:25:31 MDT 2007
Is this interesting to you in your quest to learn about the markets as
well as its link with Detroit and Ford? What a bunch of crooks!
thanks...
Break a leg in your baseball!
best
On 4/12/07, Charles Brown <cbrown at michiganlegal.org> wrote:
>
>
> ________________________________
>
>
> Goldman Sachs
>
>
> >From Wikipedia, the free encyclopedia
>
> Jump to: navigation, search
> The Goldman Sachs Group
> Goldman Sachs logo
> <http://upload.wikimedia.org/wikipedia/en/1/1d/LogoGS.gif>
> Type Public (NYSE: GS
> <http://www.nyse.com/about/listed/lcddata.html?ticker=GS> )
> Founded 1869
> Headquarters
> <http://upload.wikimedia.org/wikipedia/commons/thumb/a/a4/Flag_of_the_United
> _States.svg/20px-Flag_of_the_United_States.svg.png> New York, New York
> Key people Lloyd Blankfein, Chairman & CEO
> Gary Cohn, President & COO
> Jon Winkelried, President and COO
> Suzanne M. Nora Johnson, Vice Chairman
> David A. Viniar, CFO
> Edward C. Forst, CAO
> Gregory K. Palm, General Counsel
> Esta E. Stecher, General Counsel
> Kevin W. Kennedy, Head of Human Capital Management
> Alan M. Cohen, Global Head of Compliance
> Industry Finance and Insurance
> Products Investment Banking
> Revenue
> <http://upload.wikimedia.org/wikipedia/commons/thumb/8/8b/Green_Arrow_Up_Dar
> ker.svg/10px-Green_Arrow_Up_Darker.svg.png> US $37.67 Billion (2006)
> Net income
> <http://upload.wikimedia.org/wikipedia/commons/thumb/8/8b/Green_Arrow_Up_Dar
> ker.svg/10px-Green_Arrow_Up_Darker.svg.png> US $9.54 Billion (2006)
> Employees 30,335 (2006)
> Slogan Our clients' interests always come first.
> Website www.gs.com <http://www.gs.com/>
> Goldman Sachs offices at the Fraumünsterplatz in Zürich (the light-colored
> building on the left)
> <http://upload.wikimedia.org/wikipedia/commons/thumb/6/62/Z%C3%BCrich.Fraum%
> C3%BCnsterplatz.jpg/255px-Z%C3%BCrich.Fraum%C3%BCnsterplatz.jpg>
>
> Goldman Sachs offices at the Fraumünsterplatz in Zürich (the light-colored
> building on the left)
>
> The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS
> <http://www.nyse.com/about/listed/lcddata.html?ticker=GS> ) is one of the
> world's largest global investment banks. Goldman Sachs was founded in 1869,
> and is headquartered in the Lower Manhattan area of New York City at 85
> Broad Street.[1] Goldman Sachs has offices in leading financial centers such
> as New York City, Chicago, Los Angeles, San Francisco, Frankfurt, Zürich,
> Paris, London, Bangalore, Mumbai, Hong Kong, Beijing, Singapore, Salt Lake
> City, Dubai, Milan, Sydney, Tokyo, Moscow and Toronto.
>
> Goldman Sachs acts as a financial adviser to some of the most important
> companies, largest governments, and wealthiest families in the world. It is
> a primary dealer in the U.S. Treasury securities market. Goldman Sachs
> offers its clients mergers & acquisitions advisory, provides underwriting
> services, engages in proprietary trading, invests in private equity deals,
> and also manages the wealth of affluent individuals and families.
>
>
> Contents
>
>
> * 1 Company Overview
> * 2 Businesses
> * 3 Predictions
> * 4 History
> * 5 Corporate Citizenship
> * 6 Criticism and Controversy
> * 7 See also
>
> * 7.1 Competitors
>
> * 8 Other Notable Alumni
> * 9 References
> * 10 External links
>
> * 10.1 Data
> * 10.2 Litigation
>
>
>
>
> [edit] Company Overview
>
>
> As of 2006, Goldman Sachs employed 26,500 people worldwide. It reported
> earnings of US$9.54 billion and record earnings per share of $19.69.[2] It
> was reported that the average total compensation per employee in 2006 was
> US$622,000.[3] The current Chief Executive Officer is Lloyd C. Blankfein.
>
>
> [edit] Businesses
>
>
> Goldman Sachs is divided into three core businesses (segments): Investment
> Banking; Trading; and Asset Management and Securities Services.
>
> Investment Banking is divided into two divisions and includes Financial
> Advisory (mergers and acquisitions, investitures, corporate defense
> activities, restructurings and spin-offs) and Underwriting (public offerings
> and private placements of equity, equity-related and debt instruments).
> Goldman Sachs is one of the leading investment banks, appearing in league
> tables. In mergers and acquisitions, it gained fame historically by advising
> clients on how to avoid hostile takeovers. Goldman Sachs, for a long time
> during the 1980s, was the only major investment bank with a strict policy
> against helping to initiate a hostile takeover, which increased Goldman's
> reputation immensely. This segment accounts for around 15 percent of Goldman
> Sach's revenues.
>
> Trading and Principal Investments is the largest of the three core segments,
> and is the company's profit center. The segment is divided into three
> divisions and includes Fixed Income, Currency and Commodities (trading in
> interest rate and credit products, mortgage-backed securities and loans,
> currencies and commodities, structured and derivative products), Equities
> (trading in equities, equity-related products, equity derivatives,
> structured products and executing client trades in equities, options, and
> Futures contracts on world markets), and Principal Investments (merchant
> banking investments and funds). This segment consists of the revenues and
> profit gained from the Bank's trading activities, both on behalf of its
> clients (known as flow trading) and for its own account (known as
> proprietary trading).
>
> Most trading done by Goldman is not speculative, but rather an attempt to
> profit from bid-ask spreads in the process of acting as a market maker.
> Around 65 percent of Goldman's revenues and profits are derived from this
> area. Upon its IPO, Goldman predicted that this segment would not grow as
> fast as its Investment Banking division and would be responsible for a
> shrinking proportion of earnings. The opposite has been true, however, and
> resulted in Lloyd Blankfein's appointment to President and Chief Operating
> Officer after John Thain's departure to run the NYSE and John L. Thornton's
> departure for an academic position in China.
>
> Asset Management and Securities Services is a rapidly growing business for
> Goldman as it gains market share. It is divided into two divisions, and
> includes Asset Management which provides large institutions and very wealthy
> individuals with investment advisory, financial planning services, and the
> management of mutual funds, as well as the so-called alternative investments
> (hedge funds, funds of funds, real estate funds, and private equity funds).
> The Securities Services division provides prime brokerage, financing
> services, and securities lending to mutual funds, hedge funds, pension
> funds, foundations, and high-net-worth individuals. This segment accounts
> for around 19 percent of Goldman's earnings. As of 2006, the Goldman Sachs
> Asset Management hedge fund is the largest in the United States with $29.5
> billion under management.[4]
>
> GS Capital Partners is the private equity arm of Goldman Sachs. It has
> invested over $17 billion in the 20 years from 1986 to 2006. The most
> prominent fund is the GS Capital Partners V fund, which comprises over $8.5
> billion of equity.[5]
>
>
> [edit] Predictions
>
>
> In December 2005, four years after its report on the emerging "BRIC"
> economies (Brazil, Russia, India, and China), Goldman Sachs named its "Next
> Eleven" list of countries, using macroeconomic stability, political
> maturity, openness of trade and investment policies and quality of education
> as criteria: Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico,
> Nigeria, Pakistan, the Philippines, Turkey and Vietnam.[6]
>
>
> [edit] History
>
>
> Goldman Sachs was founded in 1869 by Marcus Goldman.[7] Goldman made a name
> for itself pioneering the use of commercial paper for entrepreneurs and was
> invited to join the New York Stock Exchange in 1896. It was during this time
> that Goldman's son-in-law Samuel Sachs joined the firm which prompted the
> name change to Goldman Sachs.
>
> In the early 20th Century, Goldman was a major player in establishing the
> Initial Public Offering market. It managed one of the largest IPO's to date,
> that of Sears Roebuck in 1906. It also became one of the first companies to
> heavily recruit those with MBA degrees from leading Business Schools, a
> practice that still continues today.
>
> In 1929, it launched the Goldman Sachs Trading Corp., a closed-end mutual
> fund with characteristics similar to that of a Ponzi Scheme. The fund failed
> as a result of the Stock Market Crash of 1929, hurting the firm's reputation
> for several years afterward. [8]
>
> In 1930, Sidney Weinberg assumed the role of Senior Partner and shifted
> Goldman's focus away from Trading and towards Investment Banking. It was
> Weinberg's actions that helped to restore some of Goldman's tarnished
> reputation. On the back of Weinberg, Goldman was lead advisor on the Ford
> Motor Company's IPO in 1956, which at the time was a major coup on Wall
> Street. Under Weinberg's reign the Firm also started an Investment Research
> division and a Municipal Bond department. It also was at this time that the
> firm became an early innovator in Risk Arbitrage.
>
> Gus Levy joined the firm in the 1950's as a well known securities trader,
> which started a trend at Goldman where there would be two powers generally
> vie for supremacy, one from investment banking and one from securities
> trading. For most of the 1950's and 1960's, this would be Weinberg and Levy.
> Levy was a pioneer in block trading and the firm established this trend
> under his guidance. Due to Weinberg's heavy influence at the firm, it formed
> an Investment Banking Division in 1956 in an attempt to spread around
> influence and not focus it all on Weinberg.
>
> In 1969, Levy took over as Senior Partner from Weinberg, and built Goldman's
> trading franchise once again. It is Levy who is credited with Goldman's
> famous philosophy of being "long term greedy," which implies that as long as
> money is made over the long term, trading losses in the short term are not
> to be worried about. That same year, Weinberg retired from the firm.
>
> Another financial crisis for the firm occurred in 1970, when the Penn
> Central Railroad Company went bankrupt with over $80 million in commercial
> paper outstanding, most of it issued by Goldman Sachs. The bankruptcy was
> large, and the resulting lawsuits threatened the partnership capital and
> life of the firm. It was this bankruptcy that resulted in credit ratings
> being created for every issuer of commercial paper today by several credit
> rating services.[9]
>
> During the 1970s, the firm also expanded in several ways. Under the
> direction of Senior Partner Stanley R. Miller, it opened its first
> international office in London in 1970, and created a Private Wealth
> division along with a Fixed Income division in 1972. It also pioneered the
> "White Knight" strategy in 1974 during its attempts to defend Electric
> Storage Battery against a hostile takeover bid from International Nickel and
> Goldman's rival Morgan Stanley.[10] This action would boost the firm's
> reputation as an investment adviser because it pledged to no longer
> participate in hostile takeovers.
>
> John Weinberg (the son of Sidney Weinberg), and John C. Whitehead assumed
> roles of Co-Senior Partners in 1976, once again emphasizing the
> co-leadership at the firm. One of their most famous initiatives was the
> establishment of the 14 Business Principles[11] that are still used to this
> day.
>
> In the 1980s, the firm made a major move by acquiring J. Aron & Company, a
> commodities trading firm which merged with the Fixed Income division to
> become known as Fixed Income, Currencies, and Commodities. J. Aron was a
> major player in the coffee and gold markets, and the current CEO of Goldman,
> Lloyd Blankfein, joined the firm as a result of this merger. In 1985 it
> underwrote the public offering of the Real Estate Investment Trust that
> owned Rockefeller Center, then the largest REIT offering in history. In
> accordance with the beginning of the collapse of the Soviet Union, the firm
> also became largely involved in facilitating the global privatization
> movement by advising companies that were spinning off from their parent
> governments.
>
> In 1986, the firm formed Goldman Sachs Asset Management, which manages the
> majority of its mutual funds and hedge funds today. In the same year, the
> firm also underwrote the IPO of Microsoft, advised General Electric on its
> acquisition of RCA and joined the London and Tokyo stock exchanges. 1986
> also was the year when Goldman became the first United States bank to rank
> in the top 10 of Mergers and Acquisitions in the United Kingdom. During the
> 1980s the firm became the first bank to distribute its investment research
> electronically and created the first public offering of original issue
> deep-discount bond.
>
> Robert Rubin and Stephen Friedman assumed the Co-Senior Partnership in 1990
> and pledged to focus on globalization of the firm and strengthening the
> Merger & Acquisition and Trading business lines. During their reign, the
> firm introduced paperless trading to the New York Stock exchange and
> lead-managed the first-ever global debt offering by a U.S. corporation. It
> also launched the Goldman Sachs Commodity Index (GSCI) and opened a Beijing
> office in 1994. It was this same year that Jon Corzine assumed leadership of
> the firm following the departure of Rubin and Friedman. The firm joined
> David Rockefeller and partners in a 50-50 join ownership of Rockefeller
> Center during 1994, but later sold the shares to Tishman Speyer in 2000. In
> 1996, Goldman was lead underwriter of the Yahoo! IPO and in 1998 it was
> global coordinator of the NTT DoCoMo IPO. In 1999, Henry Paulson took over
> as Senior Partner.
>
> One of the largest events in the firm's history was its own IPO in 1999. The
> decision to go public was a tough one that the partners debated for decades.
> In the end, Goldman decided to offer only a small portion of the company to
> the public, with some 48% still held by the partnership pool.[12] 22% of the
> company is held by non-partner employees, and 18% is held by retired Goldman
> partners and two longtime investors, Sumitomo Bank Ltd. and Hawaii's
> Kamehameha Activities Assn. This leaves approximately 12% of the company as
> being held by the public. Henry Paulson became Chairman and Chief Executive
> Officer of the firm.
>
> More recently, the firm has been busy both in Investment Banking and in
> Trading activities. It purchased Spear, Leeds, & Kellogg, one of the largest
> specialist firms on the New York Stock Exchange. It also advised on a
> landmark debt offering for the Government of China and the first electronic
> offering for the World Bank. It merged with JBWere, the Australian
> investment bank and expanded its investments in companies to include Burger
> King, McJunkin Corporation, and in January 2007, Alliance Atlantis alongside
> CanWest Global Communications to own sole broadcast rights to the CSI
> franchise. In May 2006, Henry Paulson left the firm to serve as U.S.
> Treasury Secretary, and Lloyd Blankfein was promoted to Chairman and Chief
> Executive Officer.
>
>
> [edit] Corporate Citizenship
>
>
> Goldman Sachs has been one of the most aggressive firms on Wall Street about
> taking action on climate change; the company sends its bankers home at night
> in hybrid limousines.[13] The firm has an Environmental Policy Framework
> that was established in 2005.
>
> There are various mentorship programs. The Goldman Sachs Foundation promotes
> innovation and academic performance among young people.
>
>
> [edit] Criticism and Controversy
>
>
> In 2005, the firm advised both the New York Stock Exchange and Archipelago,
> which owns an electronic trading platform, in merger talks. Controversy
> surrounded the deal as John Thain, who heads the New York Stock Exchange,
> was a former Goldman Sachs Executive.[14]
>
> In 1986, David Brown was convicted of passing inside information to Ivan
> Boesky on a takeover deal.[15] Robert Freeman, who was a senior Partner, the
> Head of Risk Arbitrage, and a protegé of Robert Rubin, was also convicted of
> insider trading, with his own account and with the firm's.[16]
>
> In 2005, Goldman Sachs received criticism from civic groups and New York
> City politicians when they received approximately $1.6 billion in taxpayer
> subsidies (mostly through Liberty Bonds) from New York City and state
> taxpayers to finance the Firm's new headquarters near the World Financial
> Center in lower Manhattan.[17]
>
>
> [edit] See also
>
>
>
> [edit] Competitors
>
>
> * ABN AMRO
> * Bear Stearns
> * Banc of America Securities
> * BNP Paribas
> * Citigroup
> * Credit Suisse
> * Deutsche Bank
> * Dresdner Bank
> * JPMorganChase
> * Lehman Brothers
> * Merrill Lynch
> * Morgan Stanley
> * Natixis
> * Société Générale
> * UBS
>
>
> [edit] Other Notable Alumni
>
>
> * Joshua Bolten - current White House Chief of Staff
> * Erin Burnett - CNBC Host
> * Sacha Baron Cohen - Actor[18]
> * Jim Cramer - founder of TheStreet.com and Smartmoney.com, best
> selling author, and host of Mad Money on CNBC
> * Henry H. Fowler - 58th United States Secretary of the Treasury
> (1965-1969)
> * Edward Lampert- Hedge Fund Manager of ESL Investments. Brought
> K-Mart out of Bankruptcy in 2003.
> * Ocado - 3 Founders of first UK online supermarket were all former
> Fixed Income Traders at Goldman Sachs London
> * John L. Thornton - academic
> * George Herbert Walker IV - member of the Bush family
> * Robert Zoellick - United States Trade Representative (2001-2005),
> Deputy Secretary of State (2005-2006)
>
>
> [edit] References
>
>
> * Goldman Sachs: The Culture of Success. Lisa Endlich. Little, Brown
> and Company. 1999. ISBN 0-316-64373-4
>
> 1. ^ Goldman Sachs— Google Maps
> <http://maps.google.com/maps?f=q&hl=en&sll=40.704066,-74.006395&sspn=0.18791
> 4,0.31929&q=goldman+sachs&om=1&ll=40.704581,-74.01125&spn=0.011745,0.019956>
> . Retrieved on 2007 January 17.
> 2. ^ GOLDMAN SACHS REPORTS RECORD EARNINGS PER COMMON SHARE OF $19.69
> FOR 2006
> <http://www2.goldmansachs.com/our_firm/investor_relations/financial_reports/
> docs/earnings/4Q06_ER-FINAL-External.pdf> (PDF) p. 1. The Goldman Sachs
> Group, Inc. (2006-12-12). Retrieved on 2007 January 17.
> 3. ^ Gavin, Robert. "Good deal: Average Goldman Sachs employee makes
> $622,000
> <http://www.boston.com/business/articles/2006/12/12/good_deal_average_goldma
> n_sachs_employee_makes_622000/?p1=MEWell_Pos2> ", The Boston Globe, The New
> York Times Company, 2006-12-12. Retrieved on 2007 January 17.
> 4. ^ Pasha, Shaheen. "Banks' love affair with hedge funds
> <http://money.cnn.com/2006/10/05/news/companies/banks_hedgefunds/index.htm?p
> ostversion=2006100607> ", CNNMoney.com, 2006-10-06. Retrieved on 2007
> January 17.
> 5. ^ >GS Capital Partners
> <http://www2.goldmansachs.com/client_services/merchant_banking/pia/capital/i
> ndex.html> . The Goldman Sachs Group, Inc. Retrieved on 2007 February 8.
> 6. ^ Khan, Jasim Uddin. "Bangladesh on Goldman Sachs 'Next Eleven' list
> <http://www.thedailystar.net/2005/12/15/d5121501107.htm> ", The Daily Star,
> 2005-12-15. Retrieved on 2007 January 17.
> 7. ^ Spiro, Leah Nathans, Stanley Reed. "INSIDE THE MONEY MACHINE–In a
> big-is-all business, Goldman vows to go it alone
> <http://www.businessweek.com/1997/51/b3558118.htm> ", BusinessWeek, The
> McGraw-Hill Companies Inc., 1997-12-22. Retrieved on 2007 January 17.
> 8. ^ Fox, Justin. "GOLDMAN: WE RUN WALL STREET
> <http://money.cnn.com/magazines/fortune/fortune_archive/2005/05/16/8260146/i
> ndex.htm> ", Fortune Magazine, Cable News Network LP, LLLP. A Time Warner
> Company, 2005-05-16. Retrieved on 2007 January 17.
> 9. ^ Hahn, Thomas K.. "Commercial Paper
> <http://www.richmondfed.org/publications/economic_research/instruments_of_th
> e_money_market/ch09.cfm> ", in Timothy Q. Cook and Robert K. Laroche
> editors: Instruments of the Money Market
> <http://www.richmondfed.org/publications/economic_research/instruments_of_th
> e_money_market/instruments.pdf> (PDF), Seventh Edition, Richmond, Virginia:
> Federal Reserve Bank of Richmond. Retrieved on 2007 January 17.
> 10. ^ Rosenkrantz, Holly, Newton-Small, Jay. "Bush Economic Adviser
> Friedman to Resign, Aide Says
> <http://quote.bloomberg.com/apps/news?pid=10000103&sid=a5PUdvzX0pXc&refer=ne
> ws_index> ", Bloomberg.com, 2004-11-23. Retrieved on 2007 January 17.
> 11. ^ Business Principles
> <http://www2.goldmansachs.com/our_firm/our_culture/business_principles.html>
> . The Goldman Sachs Group, Inc. Retrieved on 2007 January 17.
> 12. ^ Spiro, Leah Nathans. "Goldman Sachs: How Public Is This IPO?
> <http://www.businessweek.com/1999/99_20/b3629102.htm> ", BusinessWeek
> Online, The McGraw-Hill Companies Inc., 1999-05-17. Retrieved on 2007
> January 17.
> 13. ^ "Goldman Sachs and Wall Street Go Green
> <http://www.msnbc.msn.com/id/17437401/site/newsweek/> ", Newsweek, Newsweek,
> Inc., 2007-03-12. Retrieved on 2007 March 5.
> 14. ^ Insana, Ron. "NYSE chief: Hybrid trading system's the way to go
> <http://www.usatoday.com/educate/college/careers/Bus_talk/talk8-1-05.htm> ",
> USA Today, USA TODAY, a division of Gannett Co. Inc., 2005-08-01. Retrieved
> on 2007 January 17.
> 15. ^ Worthy, Ford S., Brett Duval Fromson and Lorraine Carson. "WALL
> STREET'S SPREADING SCANDAL
> <http://money.cnn.com/magazines/fortune/fortune_archive/1986/12/22/68462/ind
> ex.htm> ", Fortune Magazine, Cable News Network LP, LLLP. A Time Warner
> Company, 1986-12-22. Retrieved on 2007 January 17.
> 16. ^ Thomas, Landon Jr.. "Cold Call
> <http://nymag.com/nymetro/news/bizfinance/columns/businessclass/5693/index.h
> tml> ", New York Magazine, New York Magazine Holdings LLC, 2002-02-18.
> Retrieved on 2007 January 17.
> 17. ^ Lombino, David. "New York Authorizes $1.6B in Liberty Bonds For
> Goldman Sachs's New Headquarters <http://www.nysun.com/article/18673> ", The
> New York Sun, 2005-08-16. Retrieved on 2007 March 6.
> 18. ^ Akbar, Arifa. "Baron Cohen comes out of character to defend Borat
> <http://news.independent.co.uk/uk/this_britain/article1990387.ece> ", The
> Independent, Independent News and Media Limited, 2006-11-17. Retrieved on
> 2007 January 25.
>
>
> [edit] External links
>
>
> * Goldman Sachs website <http://www.gs.com/>
> * Goldman Sachs Statement of business principles
> <http://www.gs.com/our_firm/the_culture/business_principles.html>
> * Goldman Sachs Execution and Clearing <http://gsec.gs.com>
> * Spear, Leeds & Kellogg Specialist LLC <http://www.slk.com>
> * REDIPLUS <http://www.redi.com>
>
>
> [edit] Data
>
>
> * Yahoo! — The Goldman Sachs Group, Inc. Company Profile
> <http://biz.yahoo.com/ic/40/40176.html>
> * Annual report
> <http://www.gs.com/our_firm/investor_relations/financial_reports/annual_repo
> rts.html>
>
>
> [edit] Litigation
>
>
> * The prosecution and settlement of the research scandal cases
> <http://www.sec.gov/spotlight/globalsettlement.htm>
> * SEC Final Judgment
> <http://www.sec.gov/litigation/litreleases/judg18113.pdf> in SEC v.
> Goldman, Sachs & Co.
>
> * Appendix A
> <http://www.sec.gov/litigation/litreleases/finaljudgadda.pdf>
> * Appendix B
> <http://www.sec.gov/litigation/litreleases/finaljudgaddb.pdf>
>
> * Goldman Sachs Investor Education
> <http://www.sec.gov/litigation/litreleases/inved18113.pdf>
> * Goldman Sachs Distribution Fund Plan Order
> <http://www.sec.gov/litigation/litreleases/distr18113.pdf>
>
> Retrieved from "http://en.wikipedia.org/wiki/Goldman_Sachs"
>
> Categories: Companies listed on the New York Stock Exchange | Investment
> banks | Companies established in 1869 | Banks of the United States |
> Companies based in New York City | Family businesses | Rockefeller Center
>
>
>
>
>
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