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As Seen On Dow Jones

Submitted by Tyler Durden on 12/21/2009 14:31 -0400

12:56 (Dow Jones) Goldman Sachs' (GS) managing director Lucas van Praag
responds to several questions the Zero Hedge blog posted last week related to
Goldman's prop trading operations as well as how it defines market risk and if
it has a risk policy. Prop investing activities represent about 12% of the
firm's net revenue, fair value accounting is a "critically important" aspect
of risk management and firm says it isn't managing its business as if it has
some sort of government guarantee. But more telling is the fact that Goldman
took time to respond to these questions and criticisms, perhaps proving firm
realizes its image has taken a beating and needs to be repaired. (SMR)

We hope in the spirit of debate, Goldman will indulge us once again when we post our counter-replies very shortly.

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Mon, 12/21/2009 - 14:35 | 170941 free_as_in_beer

Self-improvement is masturbation.

Mon, 12/21/2009 - 14:51 | 170955 Assetman

You make it sound as if masterbation is a good thing.

I'll be back in about 10 minutes...

Mon, 12/21/2009 - 15:18 | 170999 Cognitive Dissonance

It takes you 10 minutes?

Mon, 12/21/2009 - 15:28 | 171014 Assetman

I get distracted pretty easily.

Mon, 12/21/2009 - 14:43 | 170946 Anonymous

Again, Tyler and Marla and crew, serious kudos for the great work ZH is doing. I note with satisfaction that it is the much-maligned blogosphere that gets the personal juices flowing at GS and moves them to actually address real issues (in whatever de minimus form they choose to, but hey, a response is a response!) - and not the deeply-captured crowd at the various elements of what is referred to as the 'mainstream media.'

Mon, 12/21/2009 - 15:45 | 171036 chumbawamba

It is a sign that ZH is a serious outfit. When did CNBC ever get GS to repond to such questions? Oh, never. That should tell you something.

I am Chumbawamba.

Mon, 12/21/2009 - 15:02 | 170974 curbyourrisk

Goldman's answers are the same as taking Viagra.....only to go at it alone in the bathroom.

Mon, 12/21/2009 - 15:07 | 170984 Anonymous

Dear Santa,
Please make Goldman Sachs give my daddy his job back.

Mon, 12/21/2009 - 15:20 | 171001 WaterWings

All you first posters kill me. Take it GS!

Mon, 12/21/2009 - 17:35 | 171150 Chopshop

hats off, TD. way to strike the nerve at GSCO.

looking forward to your reply & some actual answers about actual trading practices from van Praag.

Mon, 12/21/2009 - 17:49 | 171161 Anonymous

Give us a backstop or we kill all the puppies.

Mon, 12/21/2009 - 20:19 | 171262 Giovanni Zucchetti

On the vampire squid's mark-to-market fervor, I believe the AIG emails with respect to collateral calls reveal that the VS was more aggressive in their marks than the other counterparties.

Looking at Maiden Lane III, the CDO's the VS sold had a par value of 14 billion. AIG had provided GS with 8.4 billion in collateral, so their CDO's, when transferred,were marked down 60%.

EMBRACE THE VAMPIRE SQUID AND BECOME FABULOUSLY WEALTHY

Tue, 12/22/2009 - 00:44 | 171396 ozziindaus