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Goldman's April Fools Joke Is, Again, On Its Clients

Tyler Durden's picture





 

The biggest news this morning in corporate land is certainly the acquisition of National Semi by Texas Instruments. Which is why we were not surprised to see that Goldman was moving to "Not Rated" rating on both companies. What did surprise us, however, is that up until yesterday afternoon, Goldman had a Sell Rating on National Semi, and, define irony, Buy on Texas Instruments.

From the Americas morning summary:

And making the case even stronger, is Goldman's Sell conviction on the company since March 2008.

But the kicker undoubtedly is the following disclosure in the closing coverage report:

Goldman Sachs is acting as financial advisor to National Semiconductor Corporation in an announced strategic transaction.

Luckily, Goldman's sellside, and its clients, was behind a very impenetrable Chinese wall on this one. Our only question is whether Goldman's prop traders, who by the way are alive, kicking, but now known as "client-facing", were also kept just as "in the dark", and whether they were buying while Goldman's clients were selling. In the meantime we will keep our eye on just how "perfect" Goldman's most recent trading quarter will be, even despite the total lack of trading volume in Q1.

 


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Tue, 04/05/2011 - 08:16 | Link to Comment Cursive
Cursive's picture

Luckily, Goldman's sellside, and its clients, was behind a very impenetrable Chinese wall on this one.

TD, I wouldn't be so sure to draw this conclusion.  Maybe sellside was taking one for the team.  GS clients, on the other hand, were definitely worked over.

Tue, 04/05/2011 - 08:27 | Link to Comment LeBalance
LeBalance's picture

Was your sarcasm detector completely off?

Tue, 04/05/2011 - 08:30 | Link to Comment Cursive
Cursive's picture

@LeBalance

Maybe so, but definitely not the level that I'm used to, as excerpted from this Fukushima post:

This means Godzilla is most likely very close to hatching. 

Tue, 04/05/2011 - 09:29 | Link to Comment Thomas
Thomas's picture

Yep. Ya got reeled in on that one!

Tue, 04/05/2011 - 11:56 | Link to Comment the mad hatter
the mad hatter's picture

I guess fudiciary duty applies to everyone but bankers and politicians.

 

If I'm a doctor and i recommend something that harms my patients then you can bet i'll be sued before morning.

 

What a fucked up world.

Tue, 04/05/2011 - 08:17 | Link to Comment unwashedmass
unwashedmass's picture

 

they screwed everyone once again, what else is new. You have to wonder why anyone anywhere allows GS to advise them on their portfolios.....

you might as well hand over the entire thing == here take it, its yours. cause over time......

Tue, 04/05/2011 - 08:24 | Link to Comment Azannoth
Azannoth's picture

I think the only people remaining as Goldman clients are those without a choice, like drug barons, middle eastern dictators, gun runners, and politicians they know Goldman will take a cut but will keep quiet as to where the money comes from and where it goes

 

Goldman - the primier outlaw bank

Tue, 04/05/2011 - 11:34 | Link to Comment Bananamerican
Bananamerican's picture

+

Tue, 04/05/2011 - 08:19 | Link to Comment Careless Whisper
Careless Whisper's picture

Our only question is whether Goldman's prop traders...

...were buying while Goldman's clients were selling.

A-B-A-C-U-S


Tue, 04/05/2011 - 08:21 | Link to Comment gordengeko
gordengeko's picture

Doing God's work to the best of their ability.  That is for whatever deity these fuckers believe in.

http://www.huffingtonpost.com/charles-gasparino/post_439_b_351116.html

Tue, 04/05/2011 - 08:22 | Link to Comment Sabibaby
Sabibaby's picture

Seems a lot like taking your car to the shop and paying the mechanic to break it.

Tue, 04/05/2011 - 08:21 | Link to Comment blindfaith
blindfaith's picture

Obviously Goldman's clients don't read, anything including their portfolios and the quarterly results (and certainly not ZeroHedge).  Shine on you crazy diamond!

Tue, 04/05/2011 - 08:26 | Link to Comment alien-IQ
alien-IQ's picture

...and this is legal because.....???? it's not illegal if Goldman does it (h/t tricky Dick Nixon)?

Tue, 04/05/2011 - 08:30 | Link to Comment somethingelse
somethingelse's picture

It seems to me only GS partners come out ahead always.   I can't understand why anyone would want to be a client of GS when it has been made public time and time again how they have been caught on the opposite side of trades from their clients.   masochistic millionaires?

Tue, 04/05/2011 - 08:34 | Link to Comment chrisd
chrisd's picture

A terrible research analyst used to be just that, a terrible research analyst. Now it is cause for conspiracy

Tue, 04/05/2011 - 08:37 | Link to Comment Tyler Durden
Tyler Durden's picture

There is nothing implied here about an information leak to the terrible research analyst. There is far more implied about whether Goldman prop traded on the other side of what Goldman was soliciting, and whether it had non-public information in advance.

But, yes, just like with David Sokol, there is no reason for conspiracy there either.

Tue, 04/05/2011 - 08:44 | Link to Comment Translational Lift
Translational Lift's picture

I believe that was D Sokol & Charlie Munger......

Tue, 04/05/2011 - 08:48 | Link to Comment X. Kurt OSis
X. Kurt OSis's picture

Hey!! The unfettered right to shill more high paying clients' snake oil to less scrupulous clients (or an insurance company's shareholders/balless kool aid drinking cult members) is as American as the right to needlessly kill millions in foreign wars with no obvious objective.

U

S

A...

U

S

S...

USA!!!!

Tue, 04/05/2011 - 09:32 | Link to Comment chrisd
chrisd's picture

Of course there was nothing implied about a leak to a terrible research analyst, he still had a hold on it. But there was an implied leak to the prop traders / client-facing traders, with no shred of evidence. It is just frustrating to read a terrific piece of analysis, vis-a-vis your analysis of Bloomberg's readings of the TIC / Treasury holdings of China and then read this, which is just speculation or worse, propaganda for your own feelings on GS.

 

There are a total of 21 research analysts publishing on this name and 16 either had a hold or a sell on the Company. This would actually be a story if he had changed his rating to a buy a week ago.

Tue, 04/05/2011 - 11:54 | Link to Comment rocker
rocker's picture

Nothing implied, just the facts.

But, I will add: The Squid lives on it's prey, everybody else.  Because they add no value to anybody else but themselves. 

Tue, 04/05/2011 - 08:41 | Link to Comment Careless Whisper
Careless Whisper's picture

Insider trading case takes a turn... for the bedroom.

The prosecution also played calls between Chiesi and Akamai executive Kieran Taylor, her alleged tipster.

"Oh baby, I love you so much" Chiesi said to Taylor, who speaks of a "clandestine" visit. "I'll stay at your place," he said.

Chiesi told Rajaratnam. "I played him like a finely tuned piano." That Bitch !!!

...asked Rajaratnam to keep the information "just between us," telling him, "We need to be a team."

"Just keep shorting, every day. We've got lots of days. Nobody knows anything. Short, short, short," she told him.

http://www.nypost.com/p/news/business/racy_insider_tapes_xBTHFgGs2fccygN...


Tue, 04/05/2011 - 08:42 | Link to Comment The Axe
The Axe's picture

You are so RIGHT TYLER!!!!  

 

But just don't pick on Goldman.....Citibank had a sell and so did others...ha ha

Tue, 04/05/2011 - 08:44 | Link to Comment augie
augie's picture

What was the name of that company that sold timberwolf to its clients knowing it was a "shitty deal"....?

 

Fuck i can't remember for the life of me. Well no matter, i'll just go back to watching UFC and finding new affliction T-shirts.

Tue, 04/05/2011 - 08:50 | Link to Comment Blankman
Blankman's picture

Go get some "tats" and you fit the bill :)

Tue, 04/05/2011 - 09:03 | Link to Comment augie
augie's picture

So much worse than any joke I could make.

 

http://www.cnbc.com/id/42413861

 

The first time in my short existence, feeling that i may just know more than the person (EDIT) reading the news.

Tue, 04/05/2011 - 08:49 | Link to Comment The Axe
The Axe's picture

http://www.theflyonthewall.com/permalinks/entry.php/NSMid1404106/NSM-National-Semi-upgraded-to-Positive-from-Neutral-at-Susquehanna

 

Sponsored by the people who recommended InfoSpace to you...and Egghead, Pets.com and Excite...

Tue, 04/05/2011 - 08:48 | Link to Comment bigking12345
bigking12345's picture

GS has the A clients, the insiders that make money and the B clients the govt pension plans that eat shit.

Tue, 04/05/2011 - 09:04 | Link to Comment juwes
juwes's picture

When Saruman used Wormtongue to control and terrorize King Theoden and his people, an uncorrupted white wizard broke the spell of Saruman after subduing Wormtongue with force, and the king and kingdom became free to fight.

Who will be the white wizard and who will stand by his side?  (Please don't link to Ron Paul in white robes, it's not the kind of image he needs attached to him)

http://www.youtube.com/watch?v=3tlkrR_hasU&feature=related

Tue, 04/05/2011 - 09:18 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

reason number 196,358 to trust yourself first, versus relying on the likes of wall street when you invest your hard earned money.

Tue, 04/05/2011 - 09:24 | Link to Comment mark mchugh
mark mchugh's picture

Listen to me! You have to consider the possibility that God does not like you. He never wanted you. In all probability, he hates you.

~Tyler Durden

So once again, Goldman's clients get beat like a red-headed stepchild.

Need I remind you, Goldman does God's work?

Tue, 04/05/2011 - 09:26 | Link to Comment TexDenim
TexDenim's picture

Goldman motto: We make money for ourselves. When in doubt, f--k the clients!

Tue, 04/05/2011 - 09:31 | Link to Comment prophet
prophet's picture

Everyone knows it.

Almost no one can prove it.

No one can stop it (without a huge amount of collateral damage).

LAWFORCE a unique charitable organization bringing together the best in investigative journalism, legal activism, and social change. 

Tue, 04/05/2011 - 10:14 | Link to Comment rufusbird
rufusbird's picture

Loyd said the clients who sold Nat Semi will have to "just suck it up!"

Tue, 04/05/2011 - 10:50 | Link to Comment AldoHux_IV
AldoHux_IV's picture

Fuck Goldman Sucks

Tue, 04/05/2011 - 12:38 | Link to Comment Fíréan
Fíréan's picture

As Goldman Sachs, like similar large financial entities, have a revolving door between themselves and the Fed. and other regulatory bodies, they are guaranteed to be always acting within the "law". Or per chance they should slip up, then follows  a negotiated settlement,  an agreement to act legally  in the future and then some finely tuned lobbying to re-set the regulations ( or regulatory advise) in their favour.

Remember a time when these people stated that they ought to regulate themselves ? Well they got it  ! Just not they way everyone thought they had implied within the request, nor as  intended.

 

Upon awakening from the American Dream the people are finding themselves in bed with a monster which has devoured everything possible and is now eating them alive. It's hell when a nightmare seems to be the new reality and there's no end to it, no back to "normal".

Tue, 04/05/2011 - 13:19 | Link to Comment Hephasteus
Hephasteus's picture

I want a TI laser guided bomb for christmas. In case you're wondering santa. And I want them working closely with analog to digital companies to make useful consumer wholesale products such as more laser guided bombs. Shrike missiles, automatic area denial systems that don't need silly human thought processes or moralities to turn a football field into a meat grinder.

So please put me on your "nice" list santa and give me dangerous products.

Tue, 04/05/2011 - 13:41 | Link to Comment CustomersMan
CustomersMan's picture

 

                    Re: Goldman's Role, What's Important Here   

         The 2nd aspect of note is that it is extremely RARE that ANY firm has a SELL on a company they follow.

 

         The 1st and most important aspect is that they were engaged in advising the company's involved regarding a merger and didn't say so, along with an explanation that indicated they could not render an opinion due to their involvement.

 

          I would like to see all "time and sales" records for the period in question, leading up to the announcement, as well as any derivative positions.

Tue, 04/05/2011 - 13:41 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Ask buyers of Abacus, who were "valued clients of Goldman Sachs," what jolly & merry jokesters Goldman can be.

That's soooo Goldman!

Sat, 04/09/2011 - 21:39 | Link to Comment thames222
thames222's picture

My mom worked for National Semi in the 80s...Texas Instruments is a pretty great company too, smart move by them to acquire National.  I did buy, and it's been paying off so far.

 

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