Goldman Releases Earnings Early; Has World Gone Crazy?

EPS: $3.23/share due primarily to Fixed Income, Currency and Commodities which generated record quarterly net revenues of $6.56 billion, 34% higher than its previous record, more than double the first quarter of 2008, "reflecting strength across most businesses, including record results in interest rate products and commodities." Wonder if GS's AIG CDS unwind trades falls into this group? (never mind, that is rhetorical)

And of course GS will raise $5 billion in new capital which together with other existing cash will be used to redeem all the TARP obligations. The underwriter on the offering? Goldman Sachs.

The Goldman Sachs Group, Inc. (NYSE: GS) announced today that it has commenced a public offering of $5 billion of its common stock for sale to the public. Goldman, Sachs & Co. will serve as the sole underwriter for the transaction. The underwriter will have a 30-day option to purchase up to an additional 15% of the offered amount of common stock from the company to cover over-allotments, if any.

After the completion of the stress assessment, if permitted by our supervisors and if supported by the results of the stress assessment, Goldman Sachs would like to use the capital raised plus additional resources to redeem all of the TARP capital.

Also, as readers point out, a very curious spike in interest rate VaR - click to enlarge:

Also, did Goldman just report a 4 month quarter period?

Has the whole world gone crazy?

Comments

[Bhakta:]

GS is the head of the FRAUD SQUAD and their execs should by in jail... But they got the bucks and can buy off everyone.

Apr 14 02:45 PM

[wobatus:]

Hey, negatiive recommender, that IS who Tyler Durden is, you know. A character from the novel Fight Club. That's where the writer(s) of zero hedge get their pseudonym. Although, admittedly, that's just the Wikipedia entry on the character. Although I think the Zero Hedge guys agree with and like the annihaliting capitalism, consumerism, mass society angle.

Peace out.

On Apr 14 12:22 PM wobatus wrote:

> Tyler Durden
> A charismatic but nihilistic neo-Luddite, radical environmentalist
> and anarcho-primitivist with a strong hatred for consumer culture.
> "Because of his nature,"[18] Tyler works night jobs where he causes
> problems for the companies; he also makes soap to supplement his
> income and create the ingredients for his bomb making which will
> be put to work later with his fight club. He is the co-founder of
> fight club (it was his idea to have the fight that led to it). He
> later launches Project Mayhem, from which he and the members make
> various attacks on consumerism. Tyler is blonde, as by the narrator's
> comment "in his everything-blonde way". He frequently describes (and
> acts on) his opposition to mass society, materialism, property, capitalism,
> and almost all technology and social order, indeed he vows to annihilate
> civilization itself. He describes his ideal world as a neo-paleolithic
> paradise, in post-apocalyptic urban ruins. The unhinged but magnetic
> Tyler could also be considered an antihero (especially since he and
> the narrator are technically the same person), although he becomes
> the antagonist of the novel later in the story.
>

Apr 14 02:52 PM

[Eric in IL:]

So, my takeaway from the comments is a strong buy on GS at $100-$110. You guys are trading angry. Trade with your brains. Even Whitney has become less bearish.

Apr 14 03:21 PM

[Miles P. Je...:]

Maybe they had to provide the March 31st data to comply with SEC registration reqs re stock sale...


On Apr 14 06:11 AM Moon Kil Woong wrote:

> That is downright odd. Thanks for the highlighting strange disclosures
> since analysts and the press so often avoid asking any materially
> significant questions besides saying, "Thanks for calling on me,
> please give me your magic target forecast for next quarter's earnings
> so I can keep my job."

Apr 14 04:06 PM

[wineo:]

Has the world gone crazy he asks, focusing on GS antics, as we approach the anniversary of the Columbine disaster. All this pain at home and what about those poor souls overseas, suffering with us but not having our vote. Things won't change with Obama, that's becoming increasingly obvious.

Apr 14 04:30 PM

[pitchingpen...:]

Dear Tyler,

So I found myself a little short on cash Monday so I did some calculations and ran down to my friendly WF Banker to talk some business.

After sitting down at his desk, I congratulated him on the fine numbers WF just reported andtold him he should be really proud of their fine work.

I explained that I had made a few bad bets and taken a few bad beats over the last year and a half, but you know, I was just doing what evryone else was doing, business as usual.

I told him I wanted to do a little loan for five million, you know, just to keep myself solvent during this little economic blip. I told him I had done the calculations on my home and that my appraisal said the remaining economic life was 60 years.

Since I am going to hold the asset to maturity, the value should be right in the area of 47 million dollars, adjusted for inflation,etc., which would be just an 11% loan to value, and could he have the papers ready to sign by 4 PM.

Tyler, I haven't gotten a call back yet, should I be worried?

Apr 14 04:36 PM

[wineo:]

Judging from her appearance, Whitney is suffering the same fate as many Wall Streeters - too many high calorie lunches followed by long cat naps at her desk. Wakes up just in time to grab that bonus check. Wall Street men go bald, the women get fat.


On Apr 14 03:21 PM Eric in IL wrote:

> So, my takeaway from the comments is a strong buy on GS at $100-$110.
> You guys are trading angry. Trade with your brains. Even Whitney
> has become less bearish.

Apr 14 04:50 PM

[wobatus:]

I think Tyler's new pseudonym should be Eric Harris.


On Apr 14 04:30 PM TeeBone wrote:

> Has the world gone crazy he asks, focusing on GS antics, as we approach
> the anniversary of the Columbine disaster. All this pain at home
> and what about those poor souls overseas, suffering with us but not
> having our vote. Things won't change with Obama, that's becoming
> increasingly obvious.

Apr 14 05:48 PM

[moneynevers...:]

interesting that they found a way to not report the month of December, and instead include March which was a great month. Turns out they announced a change in their fiscal year in the annual report from a few months ago...

more here: moneyneversleepsblog.b...

Apr 14 06:16 PM

[Mad Hedge F...:]

Goldman Sachs voted with a big thumbs down on the stock today market by issuing $5 billion in new equity at $123/share. Perhaps not coincidently, this gives the government a $1 profit on its holding in the company. The move comes on top of the announcement of spectacular earnings of $3.39/share on revenues of $9.4 billion, double expectations, and a 150% rally in the stock since November. The deal was brought to market so fast it made your head spin. The money will be used as a down payment towards their $10 billion TARP repayment. Do you get the impression they are unloading this stock like it is a hot potato? Obviously they don’ think the shares are going to rocket back up to last year’s high of $200. Is it worth that much to get the Feds out of their hair? You can’t imagine a greater culture clash than between the Masters of the Universe and the Treasury’s white shirted, polyester suit wearing, bean counters. Or maybe GS thinks the market is peaking here and it’s time to cash in their chips while they can. Windows these days are vanishingly small. Please pass the Vaseline.

Apr 14 06:21 PM

[Minlita:]

With a current Tier 1 ratio of 16%I, a public offering of $5 billion of its common stock for sale to the public, is going to have a modest impact on the GS substantial cushion over the regulatory minimums to be well capitalized.
It would bolster the Company’s capital structure, the newly raised common equity would replace preferred equity.
The big concern for GS is the challenging environment in which to adapt its diverse businesses, sustain its revenues and potential impact of adverse market movements on its remaining legacy positions.

Apr 14 06:32 PM

[wobatus:]

Nice. 3 negative recs now on a post about Tyler Durden, the character from Fight Club. I get the feeling some folks do not like the connection.


On Apr 14 02:52 PM wobatus wrote:

> Hey, negatiive recommender, that IS who Tyler Durden is, you know.
> A character from the novel Fight Club. That's where the writer(s)
> of zero hedge get their pseudonym. Although, admittedly, that's
> just the Wikipedia entry on the character. Although I think the
> Zero Hedge guys agree with and like the annihaliting capitalism,
> consumerism, mass society angle.
>
> Peace out.
>
> On Apr 14 12:22 PM wobatus wrote:

Apr 15 08:40 AM

[wobatus:]

Or Dylan Klebold. Or Theodore John Kaczynski.


On Apr 14 05:48 PM wobatus wrote:

> I think Tyler's new pseudonym should be Eric Harris.

Apr 15 08:42 AM

[carey_jim:]

The short answer is no, the world has not just gone crazy, it's been crazy all along.

The long answer is History: haven't you ever hear of the Golden Calf (not to mention Genghis Khan, Stalin and Pete Rose)?

Apr 15 05:28 PM

[wobatus:]

Awesome, -7 recs for the wikipedia entry describing the Tyler Durden character from Fight Club. Some likely from Fight Club fans who don't like the entry. Some from Tyler Dirtbag/Seeking Alpha fans who got the reference. Some from fans who did not get the reference and had no idea. Some of those may like the connection. Some may be surprised and not realize their hero pseudonym is anti-capitalist. And some who just hate me. Or some combination of the above. Awesome.


On Apr 14 12:22 PM wobatus wrote:

> Tyler Durden
> A charismatic but nihilistic neo-Luddite, radical environmentalist
> and anarcho-primitivist with a strong hatred for consumer culture.
> "Because of his nature,"[18] Tyler works night jobs where he causes
> problems for the companies; he also makes soap to supplement his
> income and create the ingredients for his bomb making which will
> be put to work later with his fight club. He is the co-founder of
> fight club (it was his idea to have the fight that led to it). He
> later launches Project Mayhem, from which he and the members make
> various attacks on consumerism. Tyler is blonde, as by the narrator's
> comment "in his everything-blonde way". He frequently describes (and
> acts on) his opposition to mass society, materialism, property, capitalism,
> and almost all technology and social order, indeed he vows to annihilate
> civilization itself. He describes his ideal world as a neo-paleolithic
> paradise, in post-apocalyptic urban ruins. The unhinged but magnetic
> Tyler could also be considered an antihero (especially since he and
> the narrator are technically the same person), although he becomes
> the antagonist of the novel later in the story.
>

Apr 17 08:42 AM

[wobatus:]

Or from seeking alfalafa/tyler dirtbag writers. I'll see you at the house on Paper Street. Ya nancies.


On Apr 17 08:42 AM wobatus wrote:

> Awesome, -7 recs for the wikipedia entry describing the Tyler Durden
> character from Fight Club. Some likely from Fight Club fans who
> don't like the entry. Some from Tyler Dirtbag/Seeking Alpha fans
> who got the reference. Some from fans who did not get the reference
> and had no idea. Some of those may like the connection. Some may
> be surprised and not realize their hero pseudonym is anti-capitalist.
> And some who just hate me. Or some combination of the above. Awesome.
>

Apr 17 08:47 AM

[wobatus:]

Always trust tyler. Where's Bob paulson?


On Apr 17 08:47 AM wobatus wrote:

> Or from seeking alfalafa/tyler dirtbag writers. I'll see you at the
> house on Paper Street. Ya nancies.

Apr 17 02:22 PM

[wobatus:]

-4? You Tyler-felchers. For 1) answering the question, and 2) suggesting asking for any balance? wow, what a buncha koolaid/jizz drinkers.


On Apr 14 08:14 AM wobatus wrote:

> VaR=Value at Risk.
>
> Ask "Tyler" if there are any positive takeaways.

Apr 19 10:56 PM

[wobatus:]

Ya prefer ponces? Poofters? Pole-smokers.


On Apr 17 08:47 AM wobatus wrote:

> Or from seeking alfalafa/tyler dirtbag writers. I'll see you at
> the house on Paper Street. Ya nancies.

Apr 19 10:57 PM

[wobatus:]

Pillow-biter? LOL!

Apr 19 11:50 PM