Dinner with Goldman Sachs cost him $34 million

Quote from clacy:

These high net worth guys are interesting. They obviously have some sort of edge in whatever business they are in (to make their money in the first place).

Then they think they need to get in with IB's like GS or hedge funds in order to "beat the market" or "juice their returns".

This guy is worth a minimum of $34m via his tech company and he's trying to make money playing the Real?

What a joke.

He should read a handful of books on asset allocation and protecting money, and not be concerned with investing in derivatives that have a 90% failure rate.

Build a portfolio of stocks, bonds, cash with some RE, gold and commodities sprinkled in for an inflation hedge and call it a night.

Rebalance yearly (or whatever frequency) and dabble in start up tech companies if he likes to gamble. At least in that scenario he's the shark and not the meal.
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I don't think he's looking for allocation advice from anons on a msg board. They're asian oligarchs in banking and RE. "Inheritance to idiot sons" and all that it entails. The guy signed off on the trade or they have it recorded. Take the butthurt and close it out. He's only out the $35MM because he tried to wait for it to turn. He was out $8MM overnight by his own admission, but let it ride for weeks.
 
Quote from drownpruf:
I don't think he's looking for allocation advice from anons on a msg board. They're asian oligarchs in banking and RE. "Inheritance to idiot sons" and all that it entails. The guy signed off on the trade or they have it recorded. Take the butthurt and close it out. He's only out the $35MM because he tried to wait for it to turn. He was out $8MM overnight by his own admission, but let it ride for weeks.
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If you read the actual complaint, there are some very questionable things that Goldies allegedly did. Personally, if things happened the way it's described in the complaint and I were Gary Cohn, I would fire everyone involved in this trade on the spot.
 
Quote from Martinghoul:

If you read the actual complaint, there are some very questionable things that Goldies allegedly did. Personally, if things happened the way it's described in the complaint and I were Gary Cohn, I would fire everyone involved in this trade on the spot.
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Well, Cohn was at the dinner. You're stating that he should resign?

Regardless, you shoot first and ask questions later. He lets it ride for weeks? Sure he did. He figure that perhaps the mkt will take him out, or barring that he sues.
 
Quote from drownpruf:
Well, Cohn was at the dinner. You're stating that he should resign?

Regardless, you shoot first and ask questions later. He lets it ride for weeks? Sure he did. He figure that perhaps the mkt will take him out, or barring that he sues.
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Nah, I am saying that Cohn should fire all the sales people involved and probably a few people on the desk who priced it. They made the Don look bad to a client to whose house he went for dinner and, I imagine, a bunch of other wealthy dudes over there.

Think of this (and read the actual complaint here: http://mcnultylaw.com/wp-content/uploads/2013/12/Filed-Summons-Complaint_-NYSCEF-Doc.-No.-1.pdf). Allegedly the sequence of events was as follows:
1) Client loses money on a rates trade recommended by Goldman.
2) Client pulls Goldman's line.
3) Gary Cohn comes to dinner at client's house and promises him that they'll treat him nice.
4) Client comes back to Goldman to punt some nice EMFX basket dual binary reverse window knockout digitals w/a cherry on the top.

At this point, I would imagine that the last thing GS FX sales and the desk pricing this sh1zzle would wanna do is treat the guy like a muppet. Instead they do: they print his tickets at the worst imaginable strikes (51.04 in BRLJPY, I can't even see that sh1t on the chart). Then they charge him some ridiculous bid/offer when he asks them for an unwind and give him the old "there's no liquidity in BRLJPY during Asian hours" (strangely, there was on the way in). And then, apparently, their own internal investigation concludes that they shouldn't have allowed an institutional FX sales guy to talk to a client like this. If I were Gary Cohn, I'd be a little unhappy.

BTW, this Peter Oei is a pretty well-known guy in Sing. Also, interestingly, he sued Citi in 2009 over some trading losses and they settled.
 
Quote from Martinghoul:

At this point, I would imagine that the last thing GS FX sales and the desk pricing this sh1zzle would wanna do is treat the guy like a muppet. Instead they do: they print his tickets at the worst imaginable strikes (51.04 in BRLJPY, I can't even see that sh1t on the chart). Then they charge him some ridiculous bid/offer when he asks them for an unwind and give him the old "there's no liquidity in BRLJPY during Asian hours" (strangely, there was on the way in).
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Then why did he accept the price 51.04?

" In April 2013, Oei says, Goldman Sachs bankers in Asia persuaded him to enter into a trade betting that the Brazilian real would rise against the Japanese yen."

A poor forecast anyway!

http://finance.yahoo.com/q/bc?s=BRLJPY=X&t=1y&l=on&z=l&q=l&c=
 
Quote from Martinghoul:



BTW, this Peter Oei is a pretty well-known guy in Sing. Also, interestingly, he sued Citi in 2009 over some trading losses and they settled.
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Ostensibly the guy can't see it on the chart either. That's a hell of an edge... either you win on price or on the lawsuit. Sounds like a real c*nt to me.
 
Quote from drownpruf:
Ostensibly the guy can't see it on the chart either. That's a hell of an edge... either you win on price or on the lawsuit. Sounds like a real c*nt to me.
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Sure and we don't really know the facts of the case, really... We just see one side of the story.

All I am saying is that it's weird. This Oei guy was a private client who was obviously valuable enough for Goldman to wheel out the really big guns. Normally, these types of clients, the bank will do whatever it takes to keep happy (it just makes no sense to spend Cohn's and others' time for the sake of a few bucks on a couple of trades). So either they realized that the whole dinner/"play nice" thing was a mistake and this client was bad news all along and then decided to milk him for whatever they could. Or someone got really greedy and made Cohn look bad.
 
Quote from eurojack:

So what? If he made 34mil I bet he wouldn't be complaining about it. If you're taking a risk just STFU and deal with the outcome.
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I'm not sure Oei read the prospectus of the product he was sold but there seems to be a little more to it than the guy upset at a bet on the wrong side :

"When he sought to unwind it on the next trading day, they tried to hit him with an $8 million wind-up charge. And as the dispute dragged on for several weeks, the losses spiraled to $34 million."
 
what if record indeed shows GS took the other side of the trade, then can GS plead they were playing the role of a market maker? (providing liquidity to the market). Broker does this all the time.

Probably, the guy made a lot of money off GS in those years... GS VP had to involve in setting up the trap :)
 
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