GS too good to be true

Quote from NYOBScalper:

Maybe it's me, but I always figured GS has been making its record profits the good old fashioned way - shady transactions in front of upgrades and dowgrades, if not through direct frontrunning by having them help the trading desk unload positions... by knowing about M&A deals and other inside information, and by front running all the hedgefunds they do prime brokerage business for - if not directly front running large orders, at least working orders inefficiently so they can make a ton of money going the other way at the end, most likely though just using basic computer programs to track net exposure of their hedgefund clients so they can see where people are stuck long right to the limit of their risk management, etc though I imagine that too closely resembles productive work to them so simple front running is likely the name of the game. Oh, and of course they make money peddling shady paper.

All GS's "quant boxes" are a scam... they're boxes that buy when a human with inside information tells them to, nothing more.
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hilarious
 
Quote from a529612:

Goldman Held Bigger Share of Level 3 Assets Than Citi, Merrill

Nov. 12 (Bloomberg) -- Goldman Sachs Group Inc. held a bigger proportion of hard-to-value assets at the end of the third quarter than Citigroup Inc. and Merrill Lynch & Co., two of the firms hardest hit by subprime mortgage losses.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9yNwqgsVPGA&refer=home
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Cooking up an old story, published almost on every financial blog...Yawn...
 
Quote from ASusilovic:

Cooking up an old story, published almost on every financial blog...Yawn...
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But it is not clear whether they are going short or long.
If they are indeed short as the CEO has mentioned in the past; aren't they making a lot of cash. It is a Zero sum game after all.
 
Quote from edu:

But it is not clear whether they are going short or long.
If they are indeed short as the CEO has mentioned in the past; aren't they making a lot of cash. It is a Zero sum game after all.
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Let´s assume it´s a Zero sum game for them. What do you think is the purpose of GS buying stakes in some hedgefunds like Winton Capital Management, why they are launching two new Funds-of-Funds, why they closed GS Capital Partners VI with $20 billion in committed capital and set up a new program called "GS Direct" to make private equity investments in middle-market companies ?

Simple answer : they are called INVESTMENT Bank...:)
 
If and when there is another major fall in the market, it will be led by GS and and BSC. Lots of problems going on behind the scenes that Joe public will find out about sooner or later.

Short the rumor, buy back lower on the news.:D
 
Quote from NYOBScalper:

Maybe it's me, but I always figured GS has been making its record profits the good old fashioned way - shady transactions in front of upgrades and dowgrades, if not through direct frontrunning by having them help the trading desk unload positions... by knowing about M&A deals and other inside information, and by front running all the hedgefunds they do prime brokerage business for - if not directly front running large orders, at least working orders inefficiently so they can make a ton of money going the other way at the end, most likely though just using basic computer programs to track net exposure of their hedgefund clients so they can see where people are stuck long right to the limit of their risk management, etc though I imagine that too closely resembles productive work to them so simple front running is likely the name of the game. Oh, and of course they make money peddling shady paper.

All GS's "quant boxes" are a scam... they're boxes that buy when a human with inside information tells them to, nothing more.
More...

It's a lot more complex than that, but you have the right idea.
 
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