Moreover, 58 percent of the loans included little or no documentation — no names of the borrowers, no addresses of the homes, just zip codes. Goldman Sachs the Vampire Squid. The terms junk bond, IPO, sub-prime mortgage and other once-hot financial fare were now firmly associated in the public’s mind with scams; the terms credit swaps and CDOs were about to join them. If you laddered and spun 50 Internet IPOs that went bust within a year, so what? Fast-forward about 65 years. Over the same period, world oil demand dropped from 86.82 million barrels a day to 86.07 million. Armed with the semi-secret government exemption, Goldman had become the chief designer of a giant commodities betting parlor. Matt Taibbi’s great 2010 article for Rolling Stone described how Goldman Sachs manipulates our economy for the benefit of its executives and investors. Does the world have a new vampire squid? “I had been invited to a briefing the commission was holding on energy,” the staffer recounts. There’s also a $500 million Green Growth Fund set up by a Goldmanite to invest in green-tech … the list goes on and on. We want to hear from you! Between 1999 and 2002, the firm paid out $28.5 billion in compensation and benefits — an average of roughly $350,000 a year per employee. Founded in the 1860’s, it was long a private company. Goldman-Sachs, long reads, Matt Taibbi. Goldman started pushing hard for cap-and-trade long ago, but things really ramped up last year when the firm spent $3.5 million to lobby climate issues. First, they bundled hundreds of different mortgages into instruments called Collateralized Debt Obligations. An article from Rolling Stone magazine ten years ago had this to say about Goldman: "Goldman Sachs (NYSE:GS) is everywhere, it's like a vampire squid sucking on the face of … As Paulson said at the time, “We’re not making those investments to lose money.”. There were a lot of losers in each of those bubbles, and in the bailout that followed. All that changed in 1991 when, unbeknownst to almost everyone in the world, a Goldman-owned commodities-trading subsidiary called J. Aron wrote to the CFTC and made an unusual argument. The vampire squid uses its bioluminescent organs and its unique oxygen metabolism to thrive in the parts of the ocean with the lowest concentrations of oxygen. Rubin was a long-tenured partner at Goldman Sachs who rose to the rank of Co-Chairman of the firm. Goldman was repeatedly sued by shareholders for engaging in laddering in a variety of Internet IPOs, including Webvan and NetZero. In 1885, Goldman took his son Henry and his son-in-law Ludwig Dreyfuss into the business and the firm adopted its present name, Goldman Sachs & Co. “In the early Eighties, the major underwriters insisted on three years of profitability. Between 2003 and 2008, the amount of speculative money in commodities grew from $13 billion to $317 billion, an increase of 2,300 percent. Mnuchin is hardly the first Goldman Sachs alum to serve as U.S. Treasury Secretary. Thus, junk-rated mortgages were turned into AAA-rated investments. In This Article: public in 1996, once the tech boom had already begun, Goldman quickly became the IPO king of the Internet era. Specifically, we will ask the group to advise us on: (1) the information that we would need to obtain from a troubled dealer to assess the potential impact of closeout of a dealer’s OTC derivatives books on its counterparties and on financial markets; and (2) the information that a potential acquirer of a troubled dealer’s OTC derivatives book (and possibly also related hedges) to assess the potential risks and returns from such an acquisition. Once the Internet bubble burst, Goldman had no incentive to reassess its new, profit-driven strategy; it just searched around for another bubble to inflate. Watch Dave Grohl, Greg Kurstin Cover Mountain's 'Mississippi Queen' for 'Hanukkah Sessions', Taylor Swift’s Cruel Winter: Why ‘Marjorie’ Is Her Heart-Shredding Masterpiece, Karl Rove Rips Trump: ‘Americans Don’t Like Sore Losers’, Pornhub Upended the Porn Industry. Goldman’s mantra of “long-term greedy” vanished into thin air as the game became about getting your check before the melon hit the pavement. Taibblog: Commentary on Politics and the Economy by Matt Taibbi. What is Goldman Sachs? “If it’s going to be a tax, I would prefer that Washington set the tax and collect it,” says Michael Masters, the hedge fund director who spoke out against oil futures speculation. In this game you were a winner only if you took your money out before the melon hit the pavement. The government was trying to carefully orchestrate the repayments in an effort to prevent further trouble at banks that couldn’t pay back the money right away. 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