Archive

Posts Tagged ‘Goldman Sachs’

2013 Compensation for Big-Bank CEOs

Saturday, April 5th, 2014 Leave a comment

In light of the recent fact that Lloyd Blankfein, Goldman Sach’s chairman and CEO, received $23 million in salary and bonus for his 2013 performance (his largest pay package in six years), let’s take a look at what other big-bank CEOs were paid in 2013:

 

WSJ_2013 CEO pay-BF-AH173_GOLDMA_NS_20140404180603

 

As you can see, Mr. Blankfein’s compensation exceeded what his counterparts at the five other giant U.S. banks earned. It should be noted, though, that Goldman’s returns remained ahead of its peers as well.

 

Source: Goldman’s Blankfein Awarded $23 Million for Work in 2013 (WSJ)

Advertisements

Charitable Donations by Goldman Sachs

Tuesday, October 29th, 2013 Leave a comment

Everyone knows Goldman Sachs is good at making money, and lots of it. Having said that, you may be surprised by the fact that Goldman has given away more than $1.6 billion since 2008 (especially since Goldman — unlike most corporations with large charitable efforts — has no presence on Main Street). Interestingly, Dina Powell, president of the Goldman Sachs Foundation, the clearinghouse of the company’s giving, makes roughly $2 million annually for giving money away.

27goldman-chart-articleInline

 

Source: NYT

Legal Costs for Major U.S. Banks Exceed $100 Billion

Thursday, August 29th, 2013 Leave a comment

According to Bloomberg, the U.S.’s six largest banks have accumulated legal costs of $103 billion so far since the financial crisis. Legal fees and litigation costs account for $56 billion and the rest is for payments to mortgage investors. Interestingly, the sum of the banks’ legal costs is equivalent to spending $51 million a day, enough to erase everything the banks earned for 2012.

JPMorgan’s (JPM) legal bill is $21.3 billion and it has allocated $8.1 billion for mortgage buybacks. Similarly, Bank of America’s (BAC) legal expenses are $19.1 billion and it has set aside $28.6 billion for repurchases since 2008. The other banks included in Bloomberg’s report subject to significant legal bills are Citigroup (C), Wells Fargo (WFC), Goldman Sachs (GS), and Morgan Stanley (MS).

Bloomberg also noted the following:

The legal process could be extended if the U.S. attorney general brings more cases and unearths information that can be used in new lawsuits. While some cases have a five-year statute of limitations, those involving bank frauds have a deadline that’s twice as long. The Financial Institutions Reform, Recovery and Enforcement Act, known as FIRREA, has a 10-year limit, and the U.S. used the law against JPMorgan and Bank of America.

“It’s likely the financial institutions don’t yet know of some of these lawsuits,” said Walter J. Mix III, head of financial-institutions consulting at Berkeley Research Group LLC and a former commissioner of the California Department of Financial Institutions. “The litigation can go on for 10 years or more.”

Source: U.S. Bank Legal Bills Exceed $100 Billion (Bloomberg)

Buffett’s Latest Big Deal: 10 Million Shares of Goldman at No Cost

Wednesday, March 27th, 2013 Leave a comment

Here’s a shocker: investment guru, Warren Buffet, just made another genius financial deal.

According to Yahoo! Finance, Buffet plans to exchange warrants for 43.5 million Goldman Sachs (GS) shares that he received in a 2008 deal made during the financial crisis for 10 million shares of Goldman at no cost.

Given Goldman’s current share price, the deal is worth about $1.47 billion. Keep in mind, too, that the deal is in addition to the 10% dividend Buffett’s been collecting all along on his original stake.

So what’s the benefit for Goldman? Yahoo! Finance notes:

Goldman, in turn, won’t suffer nearly as much dilution of its stock. It will only have to issue about 2% new shares versus 9% if Buffett had executed the original warrants. Goldman will also have fewer shares outstanding when negotiating with the Federal Reserve for permission to buy back stock.

Apparently, age hasn’t stopped the “Oracle of Omaha” from cutting great deals.

Goldman and Wall Street Turn Tables on Obama Campaign

Saturday, October 13th, 2012 1 comment

According to The Wall Street Journal, Goldman Sachs was the No. 1 corporate donor to Barack Obama’s campaign in 2008. This year, no company has done more to try to defeat him. Check out these two charts regarding political contributions from Goldman Sachs and other big bank employees:

Employees of Goldman Sachs:

Source: WSJ

 

Employees of big banks:

Source: WSJ

Source: Goldman Turns Tables on Obama Campaign (WSJ)

 

 

The Economics of the Olympics

Thursday, July 12th, 2012 Leave a comment

With the London 2012 Olympics fast approaching, Goldman Sachs has looked into the economics of the event. Below are some interesting findings from their research:

They found that stock markets of recent hosts have outperformed in the year after the Games, local houses prices have tended to rise and that dictators award the most valuable medals.

Kevin Daly from GS concludes that:

It is difficult to estimate what the net effect of the indirect and other offsetting effects will be. As a central estimate, we have assumed that these effects will net out and that the overall short-term effect of staging the London Olympics will be to boost UK economic output in 2012 Q3 by around 0.3-0.4ppt qoq (+1.2-1.6%qoq annualised). This short-term benefit will be largely reversed in Q4.

On average, the host nation wins a whooping 54 per cent more medals than when it was not the host.

Source: FT Alphaville

GS also points out that:

Housing markets in London face a unique set of challenges heading into the Olympics: a backdrop of slow economic growth, a deleveraging banking sector, higher bank funding costs and a significant tightening in mortgage credit availability relative to before the financial crisis.

The impact on the stock market is somewhat easier to measure:

All recent Olympic hosts have outperformed the MSCI World index in the 12 months following the Olympics. This is true of recent hosts regardless of the size of the economy or state of development, suggesting either the local market is boosted by the international profile of the Games, or is perhaps relieved to have the Games behind them. Given the below-average performance in the UK since the Olympic announcement, UK investors may hope for a continuation of this trend, looking forward to a positive year in equities following the London 2012 Games.

Read the full article at: The economics of the Olympics (FT Alphaville)

Facebook’s IPO Filing Coming Soon (as early as next week)

Saturday, January 28th, 2012 Leave a comment

As anticipation mounts for one of the biggest IPOs in history, the Wall Street Journal reported that Facebook could file papers as early as next Wednesday. Aside from top Facebook executives and company employees, the next big winner is likely to be Morgan Stanley as the bank is close to being selected as the lead underwriter in the IPO. However, Goldman Sachs is still expected to play a significant role in the deal.

Here are some interesting points that the WSJ highlights:

  • A $10 billion Facebook offering would rank fourth among IPOs for U.S. companies, behind Visa Inc., General Motors Co. and AT&T Wireless
  • It would rank Facebook as the biggest U.S. Internet offering ever, replacing Google Inc., which raised $1.9 billion in 2004 at a $23 billion valuation.
  • At a $100 billion valuation, Facebook would be worth about the same as McDonald’s Corp. and nearly half of Google.

Because Facebook realized that it would have more than 500 shareholders by the end of 2011, which would trigger mandatory public financial disclosure, Mr. Zuckerberg decided it made more sense for Facebook to go public and reap some financial benefit from an IPO, rather than stay private but still have to release its financial information.

For more details about the highly anticipated Facebook IPO, please see (http://online.wsj.com/article/SB10001424052970204573704577187062821038498.html?ru=yahoo&mod=yahoo_hs) and (http://blogs.wsj.com/deals/2012/01/27/facebook-ipo-morgan-stanley-close-to-reeling-in-a-giant-like/)