People calls the GS as A greed investment bank! Gordon Gekko who was a main character in the movie "Wall Street" directed by Oliver Stone left a famous phase, "Greedy is good"
Likewise, Goldman Sachs loves a greed move and has always followed profits and growths on the Wall street! But, Bloomberg reports Goldman Sachs lost Money! Wow! What a astonishing story! In this year, GS has had rough moments. Government pointed a target as GS and investigated the company about a fraud lawsuit filed by SEC.SEC argued GS hide the contract with John Paulson who short position in Mortgage Backed Securities (MBS) created by GS and Chosen by John Paulson. Here is the story about the transaction between GS and John Paulson. John Paulson who is most aggressive and successful hedge fund manager had made a contact with GS and GS asked John to choose pieces of Mortgages to create a Big MBS portfolio. OF CAUSE! JOHN were willing to choose slices for GS because he would short position in the mortgages chosen by himself and he knew the mortgage would go bad. He bought Credit Default Swap (CDS) related to the selected mortgages, so the MBS would be insolvent and default, the John's company made big profits from the insurance (CDS) he bought before. However, the investors who bought the MBS from GS lost all money, but GS had no liability to pay back the loss. GS just got brokerage fees from investors and Paul and they were just in the middle of the product.
Sorry.What a long explanation. Anyway, GS is still managing its company under a greed motivation, they care less customers (investors) and care more themselves even though they are acting like a service company! I will make another comment later! Anyway, I will keep tracking on GS's performance!
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