Rubicon Associates'  Instablog

Rubicon Associates
Send Message
Michael Terry, CFA has nearly 20 years of experience in the investment management industry focused on the analysis, investment and management of fixed income and preferred stock portfolios. Over the years, Mr. Terry has analyzed and invested in both public and private companies around the world... More
My blog:
Follow me on twitter @RubiconAssoc
  • Goldman Sachs CU Seeks More Vault Space  0 comments
    Apr 1, 2010 4:08 PM | about stocks: GS

    From the Credit Union Times:

    After expanding it field of membership to employees of other Wall Street firms last year, Goldman Sachs Employees Credit Union has run into a storage problem. After bonus season this year, so much cash flooded the CU that it has filled up the 9,000-square-foot vault deep in the subbasement of its new headquarters building in downtown New York.

    “I’ve got $10,000-bills coming outta my ears,” said the CU’s president/CEO, Bea Dogooder. “After we filled up the vault, I started trucking it to my estate in Great Neck, but my chauffer is all ticked off that he now can’t get to the Lamborghini in the garage.”

    All these deposits have also put a serious ding in the credit union’s capital ratio, which plummeted from 9.0% to 6.0%, teetering on the boarder of no longer being adequately capitalized. However, the credit union has found a back door to TARP money through its sponsor organization to help prop it up.

    Goldman Sachs executives were very grateful for this boon. “I’ve got all this bonus money, so I don’t need to borrow money to help out my credit union’s capital ratio. That’s not my problem,” Goldman executive Ira Cheatsya said. “We should just convert it to a bank so the credit union can expand its access capital, and then I could sit on the board and make big bucks for two-hour, monthly meetings.” Upon hearing that credit union boards were run by volunteers he laughed until he cried, wiping his eyes on a $100-bill.

    But one problem Cheatsya faces is the unique way the CU pays interest on its share accounts. Each quarter members are required to come to the CU and roll the dice. The result may result in a 2% interest payment, but if the member rolls snake eyes, that member not only forfeits the interest but must pay a 2% fee. “It’s all part of the Goldman philosophy of hedging everything,” said Cheatsya. “And if they roll snake eyes twice, we give them some Greek government bonds we’ve got laying around. They make great wall paper.”

    Editors Note: Happy April Fool’s Day.


    Couldn't help but blog this, gotta have a sense of humor.  Yeah, Goldie even gets a bad rap by credit unions.



    Disclosure: No position
    Stocks: GS
Back To Rubicon Associates' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • $AAPL doing benchmark 3yr FIX/FRN / 5y FIX / 10y / 30y
    3 days ago
  • $MSFT buying $LNKD for $26B. Scattershot strategy
    Jun 13, 2016
  • $SSW issues 8.20% series G preferred. $40mm deal. June 2021 call. Pricing on top of Series E
    Jun 9, 2016
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.