jt77

Goldman Starts Getting Smaller

Maybe these are clawbacks?


On Dec 16 11:48 AM bodysurf wrote:

> We can put aside the idea that "compensation and benefits fell to
> a negative $490 million". Unless Goldman managed to force people
> to work, not only for free, but to pay GS for the privilege of showing
> up there every day, it's not possible for an expense to be a negative
> number. Perhaps they meant to say the expense GROWTH was negative,
> but I suppose that's what passes for research at Moody's these days.
> Quelle surprise.
>
> And there is absolutely zero chance that Goldman made a profit this
> year. We can fully expect that future quarters will wipe away whatever
> phantom profits GS claimed to have earned in 2008. One of the great
> short sell candidates of 2009, considering it's one of the few with
> some meat still on the bone.

Goldman Starts Getting Smaller

Let's see...
1. No Tier 3 capital loss writedowns reported. This will probably come in the January Stub Report.
2. Big time pay cuts. Without them, losses would have EXCEEDED Meridith Whitney's estimate.
3. M&A business expanding? REALLY?
4. Usually, when a stock blows estimates like this, it's price goes down. Here, it skyrockets. Bloomberg reports the reason is that the losses beat the most pessimistic estimate. Would they say that for anybody else?
5. Just a hunch, but GS is probably abusing its rating's arm - taking short or long positions just before announcing downgrades or upgrades to the lemmings.