Is Goldman Spokesman Michael DuVally Lying? Goldman's 47-52 Market In YRC CDS Would Indicate So...
Earlier, Goldman Sachs, which has a propensity for pissing pretty much everyone off these days, got in some hot water with the Teamsters, for allegedly "actively soliciting bond trades for clients and underwriting credit-default swaps to benefit from a failed exchange and resulting bankruptcy." We won't comment on this as we have repeatedly said it is quite farfetched to say that CDS in itself can create the kind of death spirals that those unfamiliar with the product tend to believe occur courtesy of CDS traders. However what did catch our attention was the following claim made by Goldman spokesman Michael DuVally: “Goldman does not have a position in [YRC], nor are we making markets in the company’s bonds or credit-default swaps.” That we will comment on, because it appears to be an outright lie.
Yesterday, December 16th, at 10:46 am Goldman trader Josh Hershman sent out a Bloomberg run to clients in which Goldman made a market in YRC 5 year CDS as 47-52 (we won't comment on that bid/ask spread, suffice it to say these kinds of spreads will guarantee Goldman keeps raking in the billions for years to come.) This is a market, and also highlighting that "25MM CASH AND CDS TRADING HERE POST EXTENSION" doesn't really help your case. DuVally either does not understand what making markets is, or, much worse, is blatantly lying to Bloomberg. Both cases require additional elaboration by Goldman. In either case we suggest Michael go straight to the corner top floor office, with a dunce hat, for a stern reprimand.
And just to make sure there is absolutely no confusion, Goldman also makes a market in YRC's Term Loan, which was quoted 68-74. We look forward to Goldman's refutation of these allegations.
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on Thu, 12/17/2009 - 12:38
#167647
It seems the fine work of former Salomon Brothers traders emerges (or so it seems). The cesspool has not changed from the 80's, or 90's for that matter. What's the motto, "Don't blow up your client... unless it's profitable."?
on Thu, 12/17/2009 - 12:38
#167649
Speaking truth doesn't matter. Never did in fact. To the professional liar, the truth is only used in small doses for credibility and to support the lies. It's the 30 second sound bite that rules the world. Truth is for suckers and gullible investors. Didn't you get the memo? :>)
on Thu, 12/17/2009 - 13:21
#167713
"Is he lying"?.... Are his lips moving?
on Thu, 12/17/2009 - 14:54
#167853
30 seconds for a sound bite? You over estimate J6P's attention span by 20.6 seconds.
on Thu, 12/17/2009 - 12:45
#167657
The Squid thinks quickly and decides to paint DuVally as a rouge wildcat spokesman whom The Squid reluctantly acquired to fulfill equal opportunity employment requirements.
From Fly on the Wall:
12/17/2009 - 11:40
Goldman Sachs says "looking for ways to help YRC Worldwide", Dow reports
I'll take "Blatantly Lying" for $1000, Alex
on Thu, 12/17/2009 - 12:47
#167660
Yeah, piss off the Teamsters, that's a REALLY good strategy.
on Thu, 12/17/2009 - 12:52
#167665
Maybe this is why GS has a "conviction buy" on Glock...
on Thu, 12/17/2009 - 13:51
#167761
Who needs teamsters, Warren just bought the railroad. Oh, isn't Uncle Warren a Goldman shareholder.. Oh oh my..hmmm, what to think anymore. I'm confused would Warren want truckers disappeared?
on Thu, 12/17/2009 - 14:29
#167813
God's work
on Thu, 12/17/2009 - 12:53
#167669
Thanks for keeping the squid on the radar TD.
Have we heard from Lloyd Blankfein yet on the 20 plus billion FDIC TLGP yet? Blankfein claims he wishes Goldman's participation was "zero", yet he has 20 billion to pay off the taxpayer supported bonds. Seems hypocritical yet.
While at it, the CFO David Viniar claims that Goldman is on its own two feet independent of government support.
Question for the group: shouldn't a CFO be aware of the fact that his company issued 20 plus billion dollars worth of bonds that are backstopped and subsidized by the American taxpayer through the FDIC?
I've never been a CFO of a large financial institution so I wouldn't know for sure. I guess it is plausible though, right?
on Thu, 12/17/2009 - 13:13
#167699
while the bonds may benefit goldman, what do they cost the taxpayer if they don't default?
on Thu, 12/17/2009 - 13:55
#167764
Hi Lloyd,
if all goes well you win otherwise the taxpayer lose. No wonder you get a huge bonus sidestepping the cost of risk...
on Thu, 12/17/2009 - 14:05
#167776
much better - the stupidity of our government shocks me - why didn't they make a condition of exiting tarp paying back their FDIC insured debt
on Thu, 12/17/2009 - 17:03
#168057
Stupidity? I don't think so. Goldman Sucks structures what the 'government' does or doesn't do (or say).
They didn't make it a condition because Goldman told them not make it a condition or else....they could look forward to less contributions, payoffs, Cayman accounts, and other bribery.
on Thu, 12/17/2009 - 15:33
#167911
1. the cost is inflated commodites for example. how about oil.
2. inefficent allocation of capital to a very select few.
3. further concentration of financial power to an organization that has eliminated, or had done for them by a former ceo who was Treasury Sec'y, significant competition (lehman, bear, perhaps ML in a way) leading to great market control, diminishing the efficient operation of the markets.
i could go on but why feed a troll any longer. or a goldman sycophant. or a goldman employee themselves.
167699... how about you addressing the Viniar statement and the Blankfein statement. would love to see your side of that story.
on Thu, 12/17/2009 - 12:54
#167670
Those gun permits don't seem like a such a crazy idea anymore.
on Thu, 12/17/2009 - 13:00
#167679
saw the runs too....liars
on Thu, 12/17/2009 - 13:11
#167696
liar, liar, pantsonfire.
on Thu, 12/17/2009 - 13:01
#167680
+100
on Thu, 12/17/2009 - 13:02
#167683
i got the captcha correct the first time!!! yeaah..
on Thu, 12/17/2009 - 13:18
#167707
Please leave GS alone. They are busy doing God's work. Move along.
on Thu, 12/17/2009 - 13:28
#167722
Usury is a sin on the order of rape and slavery.
What this country has become is disgusting. Here is what comes to my mind when I think of our captured government and companies like Goldman Sachs.
Boo!
http://www.youtube.com/watch?v=Q_c7SbkGaLk
on Thu, 12/17/2009 - 13:20
#167710
check out the volume on Citigroup
on Thu, 12/17/2009 - 13:21
#167714
communications@teamster.org
Have the teamsters been made aware?
on Thu, 12/17/2009 - 13:27
#167721
The platform of the Progressive Party of 1912, formed by Theodore Roosevelt, was 'to destroy this invisible Government, to dissolve the unholy alliance between business and corrupt politics [it]... is the first task of statesmanship of the day.
on Thu, 12/17/2009 - 13:30
#167727
A simple search on Bloomberg shows them (as of 09/30/09) long approx. 577,025 shares. Anyone see any updated information concernign this position?
Also, it shows them long 6,239 bonds, owning 1.19% of their debt.
on Thu, 12/17/2009 - 13:39
#167747
You're not serious thinking all of their positions are clearly labeled, are you?
on Thu, 12/17/2009 - 13:44
#167754
Well these are clearly labeled, just not sure if they are updated.
It says above...they have no positions.
on Thu, 12/17/2009 - 13:35
#167738
Where is Teddy when you need him? We obviously need a new Progressive Party.
on Thu, 12/17/2009 - 13:35
#167739
Here it is....
Why not make the whole securities marketplace....
RETAIL only....
Real smart institutional players can only sell advise...and are no longer allowed to buy or sell....
Fair enough ????
on Thu, 12/17/2009 - 14:19
#167793
Thanks for your thoughts Anonymous. But there is a golden rule in business and law. There is more than one way to skin a cat. Meaning there will always be a way to achieve objectives no matter how many obstacles.
I like you Anonymous contributors you add some great talking points.
on Thu, 12/17/2009 - 14:25
#167807
Very simple - if the real market is retail only - they will create a synethetic "derivative" type marketplace - except they wont be called derivatives
Goldman will invent squidtivatives, which will not be subject to any clearing or transparency requirments, and this will only create further incentives.
We need to go back to the old wall street of martinis during lunch and hundreds of competing firms. The curernt model of MBAs and CFAS who probably never had to write a check because they never had to pay their own bills just doesnt work.
on Thu, 12/17/2009 - 13:37
#167742
end GFS
on Thu, 12/17/2009 - 14:08
#167780
What's the big deal?
Everyone sees an action taken by GS and immediately assumes it's nefarious.
All Goldman is doing is providing liquidity. It appears entirely legal (on the surface), and GS is actually encouraged to do so.
If anything blame the legislation and SEC. Don't hate the player, hate the game.
Sorry to break it to you, but your local UPS driver (Teamster) isn't exactly 'the little guy.' Have you seen their bonuses and pension plans? They've also been filling their coffers intravenously through a large sucking noise on the surface of humanity.
In a future press release, DuVally will just claim Chinese Wall anyways.
His statement actually helps GS.
on Thu, 12/17/2009 - 15:46
#167933
You have about the only reasonable comment on here.
I'm not in the business, but can I assume a Chinese Wall means regulations impose a situation in which a company spokesperson is not allowed to know the content of each and every email on a minute-by-minute basis?
on Thu, 12/17/2009 - 17:06
#168062
I have a question for you and #167780.
When The Squid sends you home so you can post "friendly comments" on ZH from a not well know IP address, do you get the rest of the day off or does he require you to return to headquarters to finish the day of work??
TIA.
on Thu, 12/17/2009 - 14:19
#167795
"25MM CASH AND CDS TRADING HERE POST EXTENSION"
what does that actually mean, particularly the latter part?
on Thu, 12/17/2009 - 15:41
#167924
There was a YRC (a trucking company on the threshold of bankruptcy) deadline for a deal with lenders. It was extended by YRC, so it's post extension.
on Thu, 12/17/2009 - 14:23
#167798
"In other news, executives from the bank Goldman Sachs, have turned up missing. Sources report that 9 of the top executives wound up leaving their office Friday but never made it home."
on Thu, 12/17/2009 - 14:27
#167810
"It's not a lie if you believe it"
- George Costanza
on Thu, 12/17/2009 - 14:36
#167823
Off topic,
I took notice on this site (one of the bloggers) who pointed to some, shall we say "odd" options buying.
On dec 4. someone bought NYB (Ny Comm. Bancorp inc) Calls in extreme amounts,..(at strikeprice 12,..while trading af 12.33)Expire dec 18.
I know very little about trading options so maybe someone here can enlighten me,.. but its smells like inside (or extreme gambling),... as the stock is tradign at 14.16 today,... someone made a fortune in 12 days,..
Anyone able to explain the "normality" here?
M. Copenhagen
on Thu, 12/17/2009 - 15:20
#167893
You may find more information at the following site, by typing in "nyb insider trading" after activating the appropriate link: http://justfuckinggoogleit.com/
Alternatively, you could look it up in the search box on ZH, which would yield the top 2 results from the preceding exercise:
http://www.zerohedge.com/article/mary-schapiro-must-immediately-investig...
http://www.zerohedge.com/article/bloomberg-finally-discloses-nyb-insider...
Sarcasm aside, welcome aboard, Copenhagen. The above exercise also shows meaningful input from readers is noticed and followed up on.
on Thu, 12/17/2009 - 15:56
#167958
Thank you CD for red carpet sarcasm welcome,..
English is not my first language so I can not follow the tone, but I wouldn´t have expected any less from this ZH band of eco-cyber rebels that I have come to love, although you post atricles faster then my humble brain can process or have time to read,. so there might be an information gap once in a while,..anyway you seem to fill ALL the gaps out there and even have time for mine!
Very impressive
M. Copenhagen
on Thu, 12/17/2009 - 17:32
#168091
Seriously, you're just a big mean-ie, Sr. CD.
Why does every member treat the Anonymous people like that.
That is not very kind and encouraging. Why would these people want to join ZH if the rank and file are know douchenozzles who only want to insult and discourage.
ZH, if you build a mote it will keep outsides, OUT.
Elitist much? Keep digging.
on Thu, 12/17/2009 - 14:37
#167828
Shakedown?
on Thu, 12/17/2009 - 15:54
#167951
There's no way Goldman would pass up that spread. Neva gonna happen.
Isn't it time to FREE SERGEY from that malicious prosecution? Another continuance yesterday. Is the Judge asleep or what? Who is in possession of that software that allows for unfair market manipulation?
http://www.crimeandfederalism.com/2009/12/aleynikov-case-continued-again.html
on Thu, 12/17/2009 - 20:41
#168299
I read a story, that stated Tzipi Livni was the recipient, and that she notified the authorities, that zionist bankers, had the program designed, to steal wealth, from the market. so what's changed? oh yeah, she's out of the picture now.
on Thu, 12/17/2009 - 16:01
#167971
I'm sure we will get an explanation from Lucas Von Fag
on Thu, 12/17/2009 - 16:38
#168026
don't know enough about CDS but wouldn't GS have to pay up if the company defaults? so goldman would want YRC to stay alive so it doesn't have to pay out. right?
on Thu, 12/17/2009 - 16:57
#168046
I don't think so, It seems like Goldman acting like a bookie collecting a risk free spread
So - sports gambling is illlegal but this isnt? SUPER
on Thu, 12/17/2009 - 16:59
#168050
Teamsters versus Blackwater, er Xe, er whatever...
on Thu, 12/17/2009 - 17:07
#168065
TD, you make a lot of inaccurate comments and almost never correct them. Why do you hold Goldman Sachs to a higher standard?
Example: your post on "how to lose 14%" with the Cramer video on Citi. The only problem is Cramer explicitly said buy Citi ONLY on the secondary offering (which was priced at $3.15) and if you buy it any other time "you're an idiot." The stock closed today at $3.22. I wouldn't touch it with a 10 foot pole and it may turn out to be a stinker and I can't stand Cramer but the idea that people who followed Cramer's recommendation on Citi quickly lost 14% is a blatant lie. You posted the video so I presume you watched it.
So to put this in the same terms as you did with regard to the Goldman PR guy, either you don't understand what Cramer meant when he said to only buy Citi on the secondary or you're blatantly lying to ZH readers.
I'll bet if somebody pointed out your post to Cramer today he's going to tear you a new one tonight on his TV show, as he should. And there goes your credibility.
on Thu, 12/17/2009 - 17:15
#168073
You dont understand finance. You see H Blankfein went to harvard collegium. thats where all great american bizness men go to learn finances and the latest hustlin techniques. Amerika has the best skools in the earth. I bet Harvey Blankfein even read a book once; not the whole thing but some parts.
on Thu, 12/17/2009 - 17:51
#168121
Maybe Lloyd will have a meeting with Jimmy Hoffa to discuss this latest action.
on Fri, 12/18/2009 - 00:20
#168492
at the Machus Red Fox
on Thu, 12/17/2009 - 18:01
#168135
The part that makes me smile is the
double smiley after POST EXTENSION::>
it's like a malicious little grin of evil
HAHA::>
FUCKYOUTEAMSTERS::>
Nice tie in with Buffet's acquisition of das train lines.
Wonder if he's got shares in the FEMA camps too.
I've been wondering quite a bit lately how the traditional organized crime syndicates are going to take to Goldman Sachs stealing every last little bit of graft available.
I mean, they're in the protection racket now too, right?
So it's like somebody else here said...whada they gonna
hire Xe to strong-arm for them?
Maybe they'll have too.
-MobBarley
on Thu, 12/17/2009 - 20:45
#168303
maybe, they already own Xe
on Thu, 12/17/2009 - 18:36
#168173
So, any bets on when Lloyd gets knee-capped?
on Thu, 12/17/2009 - 20:27
#168283
CHINESE WALL
A thin curtain stretched across a one-room hut, so the kids can pretend Pa isn't porking
Ma.
Of course everyone at GS knows to lie and deny, just as the proverbial Chinese children know Pa and Ma aren't doing their exercises.
on Thu, 12/17/2009 - 20:46
#168304
A foreign proverb "Greedy's money gets taken by liers". While everybody here is well familiar with GS shaningans,one should ask the simple question:Why is YRC in this dilema?. Obviously,they took out loans so that they can expand when there was no growth. So how are they going to expand?by offering better economies of scale,and driving others out of business. Isn't that how most of those heavily indebted corporations find themselves in this hole?. So no sympathy whatsoever for them. And while GS does have evil intentions,it only succeeds when it finds another evil doer,except that GS have somebody who will backstop them,and others don't....