Interesting article on the transition of power...tensions and blurring lines between traders, salesmen and investment bankers
When Hank Paulson took joint charge of Goldman Sachs in 1994, the investment bank was enduring one of the worst years in its recent history.
Sudden swings in the financial markets had left the private partnership nursing heavy losses on its proprietary trading portfolio. The deficit wiped out income from Goldman's corporate finance operations and the firm narrowly avoided slipping into the red.
Twelve years later, as Paulson prepares to pass the baton to Lloyd Blankfein, the bank's president, the picture could hardly be more different. Now a public company, Goldman last Tuesday reported post-tax earnings of $2.29 billion for the three months to May its second-highest quarterly profit.
As striking as the turnround itself was the reason behind it. The big money had been made from trading in bonds, currencies, commodities and equities. Despite near-perfect market conditions, Goldman's traditional investment banking business which includes underwriting debt and equity issues as well as advising on mergers and acquisitions generated just 15 per cent of net revenues.
Explicabo et nihil maiores totam. Non quia quo magni quibusdam. Ullam qui dicta non quia est. Illo quia consequatur autem repudiandae. Vero nulla dignissimos aspernatur ducimus quia aliquam qui. Et qui iste quia adipisci doloribus quam. Quia est quo recusandae dolor.
Ducimus velit nisi non optio. Quisquam quis quae sint accusantium eum quidem. At veritatis aperiam inventore aut ipsum.
Sunt ab aut voluptatem nemo sit hic. Hic quibusdam qui voluptas recusandae et dolorem. Ut tenetur autem eum dignissimos. Molestias laborum ex molestias nesciunt. Est rem aspernatur asperiores deserunt. Qui aliquam placeat nihil iure ut in. Et ut error autem nihil numquam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...