DougM

Goldman Sachs: Still Arrogant and Unrepentant

Almost as bad as the fact that this company is borrowing taxpayer's money at close to 0% is the fact that the managers of this company are rewarding themselves with an outsized share of profits that come directly out of the shareholders' pockets. Looking at where the winnings - er, I mean earnings, are coming from, it's not a stretch to say that shareholders of GS are more like investors in a publically-traded hedge fund. At least at a real hedge fund investors would only be paying the managers 20% of the profits; what fraction of the profits are GS shareholders being allowed to keep?

On Jul 26 12:24 PM Chemist29 wrote:

> if you think goldman makes too much money for its shareholders, buy the stock.

Making Sense of the Brokerage Bust

The hedge funds are doing exactly the same things these failing firms have been doing; gambling in the markets against each other with huge sums of borrowed money. The only difference is, the big WS firms forced the rest of us to invest in their schemes by virtue of being publicly traded. And, in an odd way, the hedge funds are a cheaper way to lose your money, since their take of the profits is "only" 20%.