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Is Goldman's Image Problem The Reason Why The Treasury Picked Morgan Stanley To Sell Its Citi Stake? Gasparino Says Yes
Charlie Gasparino who last week interviewed John Mack (and, we contend, failed to ask any truly provocative questions especially as pertains to MS' record prop trading losses), contends that the reason why Morgan Stanley was picked over GS in selling the Treasury's shopping Citi stake, even as Pandit's firm is set to quadruple and become the most valuable worthless company in the world (with one quadrillion outstanding shares, and a projected price per share of $16, well you do the math), is Goldman's increasingly shaky public image. And that the firm's negative perception may ultimately alienate more investment banking clients who wish to avoid the "fallout of working with Goldman." From Fox Biz:
For the past year, executives inside the image-challenged Goldman Sachs, have debated whether the firm's publicity problems will have an impact on its bottom line. The answer so far has been ‘no’
given the firm's huge profits last year. Indeed, the big Wall Street firm has held off on plans for a major publicity plan
designed to change public opinion.
But times might be changing. The decision announced earlier Monday that the Treasury Department has chosen Morgan Stanley
to advise it on unloading its massive stake in Citigroup
-- the largest stock offering in history and one of the most
high-profile investment banking assignments in years -- has given credence to the opinion of some senior executives inside
the firm that Goldman's image problems will impact its client related business. These executives worried that prospective
investment-banking clients concerned about their association with the firm will simply hire other players rather than face
the fallout of working with Goldman.
[In 2009] Goldman's image problems suffered. It was lampooned in a widely read Rolling Stone article
as a giant "squid monster," and roundly criticized by politicians for its connection to government, which some say gave it
an advantage over other firms like Lehman Brothers, which was forced to file for bankruptcy, while Goldman was bailed out.
Comments from CEO Lloyd Blankfein didn’t help either; he was quoted as saying that the firm was doing "God's work" when the
firm buys and sells bonds, instigating more populist backlash.
Charlie did not get his call seeking confirmation returned by Goldman. Yet it is pretty safe to assume that Goldman will soon roll out another philanthropic event, this time donating $100,000 to the Dead Kittens Society, in the hopes that it will be picked to lead underwrite the government's sale of its $180+ billion stake in AIG (if that were to happen, Goldman might reevaluate the prudence of having chosen an all-glass, rock breakable facade for its new headquarters), which at the rate the market is melting up, should take place in a month or two.
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mainstream journalists rarely ask good questions
Who cares, they just completed the biggest heist in American history, in broad daylight no less. The partners and their families have enough to live on for generations.
Nah, they'll be hunted down and destroyed like the rabid filthy animals they are.......
COUNT ON IT!!!!
Gorman and Mack along with Goldman Sucks' Lord Blankfeind, went to Geithner and told him who would handle the dumping of the shares. Not the other way 'round.
Anyone who thinks the Treaserve operates as an independent government entitty is deluded and shouldn't be writing for this board. Timmay doesn't make a move unless Jamie, John, Gorman, and Lord Blankfiend tell him what to do.
....gots to agree wit ya there, anony. Lloyd and the boys divvy up the prey. Like a family of jackals.
Well hey, you don't think those dead kittens just keep bouncing forever without some kind of compensation, do you?
TBTF Author Sorkin claims they weren't chosen for an advisory role in 08 because of image problems re: the then already circulating rumors of "closeness"
...and why did Fox Business call Taibbi's moniker for GS 'squid monster' when everybody knows it's 'vampire squid'? Are they intentionally trying to bowlderize the reference, or are they just unaware?
Because squid monsters have a way of being written out of a narrative.
This is just the Banker version of a husband shopping at the Safeway to put the neighborhood rumor that he's fucking a girl at the Piggly Wiggly to rest.
Now that is funny
Goldman has no image problem. In fact, they and JPM came out winners from this crisis, asserting their "Chief Pricks" status on Wall Street. Everyone wants to deal with the chief pricks because they're too scared not to.
"Goldman has no image problem?"
Put down the crack pipe, Leo.
You can say whatever you want about them, but GS prints money. I don't single Goldman out more than the rest of the Wall Street banksters - they're all financial parasites living off the biggest Ponzi scheme in history. Worse still, unlike hedge funds, they got no skin in the game.
"Towards thee I roll, thou all-destroying but unconquering squid; to the last I grapple with thee; from hell’s heart I stab at thee; for hate’s sake I spit my last breath at thee. Sink all coffins and all hearses to one common pool! and since neither can be mine, let me then tow to pieces, while still chasing thee, though tied to thee, thou damned whale! Thus, I give up the spear!"
Goldman Sucks doesn't have an image problem. Everyone knows the boys at GS would push their own mother down a flight of stairs if they could make a buck, or get a bigger bonus. That's the image they were going for!
Pretty much just get rid of a society that allows the predators to be protected, and you will see society take care of the problem itself.
And no, a bunch of 60 and up year old men with a bunch of numbers on computers in their bank accounts stored on computers will not get any sort of advantages when it comes to this competition.
Exactly. Account #'s and bank accounts, etc. will soon be rendered meaningless...........
Just to remind that if Blackstone was picked to
assess the "value"of the Maiden Lane
assets, Morgan Stanley did most of the
checking of the 'cooked books' of AIG,
at the request of the Federal Reserve of
New York, so this just amounts to "wash, rinse and
repeat", expect for the fact that Tiny Tim
will maybe not be the one to sort the laundry
The word at the puppy mill is God is no longer taking calls from GS.
That's a good one. Perhaps we've left JPM unfairly unnoticed, like the proverbial red-headed step-child.
The step-child is just as evil, of course. What's going on--these guys have both Repo 105 and silver market manipulation troubles and are still viewed as the "good guy" alternative to The Squid?????
Party like it's 1929. Party on while LectureMan's half way round the world lecturing the Prez of Afghanistan about rooting out corruption in Afghanistan. Party on, baby !!
@Rainman,
Party on Rainman. Uh, would you pass that please. Gots to be bettern what I got.
Gaparino's The Sellout wins the coveted IRE award for 2009 Book.
There have been many books about the economic crash, but The Sellout by investigative reporter Charles Gasparino stands out in large part because of the careful research. The book exposes the self-indulgent, risk-hungry, contempt-filled attitude of many of the Wall Street traders and bankers that led to the crisis and puts the most recent crisis into historical context. Gasparino's work goes beyond simple finger-pointing and presents, in a reader-friendly, compelling way, why the system collapsed and how current policies may be leading to another round of excessive risk-taking.
. . . self-indulgent, risk-hungry, contempt-filled attitude . . . OH, NO, PLEASE SAY IT AIN'T SO!
And I had all those sick rich fucks up on the highest pedestal.
REPUTATIONAL DISCOUNT:
http://williambanzai7.blogspot.com/2010/03/goldman-bad-hair-day.html
Funny thing is C was down 3% today. If GS was handling this USG divestiture, the stock would certainly have been up 10%.
MS was a bad choice.......
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