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Is There A Liquidity Problem At Goldman Prime?
We received an interesting letter from a reader...
Our Fund tried to do wires out of our GS Prime accounts yesterday. For the first time ever, I got a call asking if “we really needed to wire the money out” and actually had them try to negotiate us out of it. I didn’t think anything of it beyond that.
The thing is, a buddy of mine just told me off-hand that they tried to wire money out of their fund’s GS Prime account too, and they had the same weird attempt to stop the wires…!
Either a) there is a major cash crunch going on (explains DXY up and ECB lending dollars maybe??), b) GS knew market would sell off today and were trying to prevent client margin calls, c) all of the above.
We have sent an inquiry to Lucas van Praag to confirm that all is well with Goldman Prime from a liquidity standpoint. In the meantime, we solicit the response of our readers to indicate if anyone may have experienced comparable "complications" upon redemption events either with Goldman, or other Prime Brokers.
Update: Goldman responds:
Hi Tyler:
We have no idea what this rumor could be about. There are absolutely no issues relating our prime brokerage business, and never have been.
Best / Lucas
So all is good.
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Seeing stuff like this on ZH makes me laugh in the moments when it doesn't make me feel dirty.
Project Mayhem seeking a dangerous path here Tyler...
"Project Mayhem seeking a dangerous path here Tyler..."
You are TooBearish...and it's "Project Hey Man," now.
LMAO
LMAO
but what about the first rule?
What would it take to discredit ZH and get it taken down?
Snapshot of Tyler giving Geithner a blowjob?
Or giving Michelle Obama one.
or G.W.Bush giving one to jeff Gannon on one of his over night stays at the white house ?????????
LOL John Galt!
You're too funny
ps: That dude (Michelle Obama), totally has a bigger one that Hussein. Means the president's a catcher ;)
or that G.w.bush is ???????????
You're too funny
ps: That dude (Michelle Obama), totally has a bigger one than Hussein. Means the president's a catcher ;)
Haha, you know what, that bitch does look like a guy
He's a catcher alright. But wifey is a lady. Has an ass as big as a Mac truck.
*Beep*Beep*Beep
"But wifey is a lady"
Lady?
Woman, maybe.
Yes. Cuz a lady wouldn't be greasin' down on tapas
and rentin' 40 rooms for casual friends in Spain
while we're in a fuckin'
Deppression.
Standing corrected as I hear all the way across the Atlantic:
"Let them eat... cake."
in NA it's a bit different:
http://www.google.ca/imgres?imgurl=http://www.banksy-wallpaper.com/wallpapers/1280x1024/31-eat-crack.jpg&imgrefurl=http://www.banksy-wallpaper.com/banksy-wallpapers/eat-crack-banksy.php&usg=__zAb3iNxMjdI15p57sTsB3BDdl5c=&h=1024&w=1280&sz=212&hl=en&start=0&tbnid=zDmgDs-KzcdveM:&tbnh=156&tbnw=196&prev=/images%3Fq%3Dlet%2Bthem%2Beat%2Bcrack%26hl%3Den%26sa%3DG%26biw%3D1150%26bih%3D761%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=676&vpy=465&dur=8781&hovh=201&hovw=251&tx=149&ty=183&ei=HnxjTKenLoOdlge_5sW7BA&oei=HnxjTKenLoOdlge_5sW7BA&esq=1&page=1&ndsp=20&ved=1t:429,r:18,s:0
Whoa, that was quite the link...
Regards
This would guarantee tons and tons of hits - just not from people who care about economics.
Proof that Blankfein is Tyler.
No one can prove that assertion!
Good question. Let's check how high the bar is....
~Henry Paulson March 2007
~Henry Paulson March 2008
~Henry Paulson July 2008
Seems like the "discredit" bar is pretty fuckin' high these days....I could do Bernanke next if you've got more questions.
What would it take to discredit ZH and get it taken down?
What a strange question. Why would you want to do such a thing?
Goldman Prime? WTF - what is this? Deceptacons vs. Autobots?
Transformers - robots in disguise!!!
Hey, now all that HFT stuff makes complete sense.
GS just wants to make sure that they have enough cash on hand to cover all of the ATM withdraw requests that they get tomorrow. Oh, wait...
Hmmmm......VeeDeeIntesteng.............
assumption and Translational
+ $500!The momentum is building! Join us tomorrow, lines might be long!
Just discovered that the parent company to my bank was/is a TARP recipient. Oh, the pleasure.
Truly truly by coincidence, I might pull several grand in order to buy a used car cash...
I'm giddy just thinking I might be a willing participant in this DDOS attack... so am I now a H4x0r?
Ha! Fooled them all. Pulled an ATM this morning!
Short Goldman much?
Anyone who uses and clears through GSET should withdraw all their funds, institutional or not.
Liquidity withdrawal win!
Short Goldman much?
Already this site is slow. Is that a black helicopter I hear?
False flag. GS is begging you to short them. Then they will kill you.
this is grounds for getting zerohedge shut down. trying to cause panic at a bank
Hilarious.
You're thinking of this place all wrong. As if I had the money back in a safe. The money's not here. Your money's in Joe's house; that's right next to yours. And in the Kennedy house, and Mrs. Macklin's house, and a hundred others. Why, you're lending them the money to build, and then, they're going to pay it back to you as best they can. Now what are you going to do? Foreclose on them?
Actually the rumor that Zero Hedge headquarters may (or may not) be the evil lair of a speculative wolfpack cabal that targets financial firms (even those in which we may or may not have a long exposure) via endless naked shorting, kinda like JPM and gold, is far greater grounds for shut down.
I thought you were a honeypot CIA operation for fringe characters?
+ the 5.5 trillion G.W.bush spend on what ????????
Just curious, but do you have an agenda? I sure don't see much on-topic information or commentary from any of your posts.
I am buying silver,gold,platinum and art. Is that ok ? Did the bush tax cuts make any jobs in america ? bushie spent $5.5 trillion !!!!!!!!! thats why I am buying pm !
Aren't all blogs?
do you really need to report on this crap like folks did in fall 2008 and cause panics on hearsay, etc?
i thought you wanted to fix this market and economy.
Reporting did not cause the panic. Too much leveraged debt and insufficient assets to cover caused the "panic".
Actually it wasn't even really a panic. Just a bunch of folks who woke up to the existence of the giant ponzi scheme which is our world economy. Oh, and a bunch of really rich, really leveraged dudes got the mother of all margin calls.
"It is error only, and not truth, that shrinks from inquiry." -- Thomas Paine
"I recommend you panic."
There's no 'hearsay' needed. Just look around. This market - and economy - NEEDS to crash. There's no other solution.
And the video (One of my favorites)...
http://www.youtube.com/watch?v=nuysYXlJ43I
Yep thats a great one. I like this one too as GS no doubt learned by example.
http://www.youtube.com/watch?v=jcUwoUmqwj0
.
"do you really need to report on this crap like folks did in fall 2008 and cause panics on hearsay, etc?"
Yes, all that happened in 2008 was due to rumormongering and had nothing to do with insane leverage or fraudulent mortgage practices, not to mention a whole host of other issues.
We'd rather not hear about this, and blithely go about our business, not worry about being prepared for any more "shocks" to the system, and trust that the business and political leaders that got us into this mess now know what they are doing and will take the correct steps in a timely manner to right all the wrongs.
Oh, and also that the above metioned leaders will forthwith have no conflicts of interest and eschew all compsenation, and not take any direction from any possible secret cabals.
"do you really need to report on this crap"
So, covering up information as this is, what - better? If we hid all of the bad news, it still won't make the underlying problem of liquidity drain disappear.
Besides, it was presented as a rumor, or hearsay - not stated as a fact.
I read this and compare it to other reports where the FED says they are slowly removing "excess" liquidity from the market - in small steps. This may be the type of anecdotal information that verifies that report.
Zero Hedge = Mini Me (Austin Powers)
JPM = Midget Porno (C'mon, you've see some.)
you are just terrible. not ugly people doing h e a v y porn, NOPE sir e. don't stay long, either.
So, we agree that naked "shorting" is repulsive. Hey! Don't you work in the cubicle next to me at the S.E.C.? Thanks for the tip on www.trannygrandma.com :-) (P.S. - DON'T TRY THAT LINK!!!!!!!!!)
well goody for U . by now i guess you have seen worst.
don't put words into my mouth.
honest, i really really really don't know how you have time for all this investigative research. really only 24 hrs in a day unless your G O D .
Trippy, is that advice or a warning?
Neither, it's just trolling.
Tripps - the same scrub who keeps letting us know he's smarter than us. Whutta surprise he shows up here - on this specific thread. I guess the CNBC kids didn't let him play today..
America! What a country! Where else can a Bulgarian immigrant get banned from the financial industry for life by the Feds for making $830 on insider trading, then pull himself up by his own bootstraps to take down the most powerful bank of the 21st Century, that firm an emissary of God?
"Oh beautiful for specious lies..."
The problem is more diverse than just a JPMorgan bond fraud issue. Sure, the venerable colossus and syndicate titan sold more than $2 trillion in USTreasurys than were issued in the 1990 decade. Records used to be found in the penthouse business offices at Cantor Fitzgerald in South Manhattan { WTC }. A database migration to New Jersey surely involve a great deal of deletions { POST 9/11 }. The problem goes far beyond the giant bank, which gobbled numerous other banks in the course of its cancerous reign, to become an appendage of the USGovt today.
Their insolvency is easy to prove, but obscured by altered accounting rules put in place on April 1st 2009.
They include generous rules that permit a dead entity to declare itself alive by filing a false accounting report, valuing their own assets at whatever suits their needs. Generally, insolvency plus illiquidity will force bankruptcy.
But Wall Street and the Big US Banks use naked shorting of USGovt-backed bonds to produce urgently needed liquidity.
All the extreme efforts to revive the US banks are futile. Imagine numerous transfusions of a dead man in the Emergency Room of a hospital, as more blood does not guarantee a resuscitation. More wires and tubes don't mean squat, since the guy has croaked and his corpse is rotting with a stench spreading into the corridors. The dirty secret, protected from the US public, is that the man died. So Wall Street and the Big US Banks are dead. By withholding the reality, a storm of funding programs has been approved by the USGovt, mostly directed at Wall Street and the Big US Banks.
Many new profit or basic elite welfare programs are channeled into executive bonuses and excess cash reserves held at the US Federal Reserve, which is also insolvent, yet another major iconic zombie.
The answers are easy. The implications are great. The impunity is disturbing. The signs of systemic breakdown are diverse. The road to perdition is clear. The path to a USTreasury default is far more obvious with each passing month. The denial is thick. The mortgage bond fraud, whose climax failure in 2008 was quite visible, went unprosecuted. So Wall Street and the Big US Banks are dead.
(more)
http://news.goldseek.com/GoldenJackass/1281556800.php
yeah and our creditors are alive and well and getting richer.
This makes it a little more clear as to what’s hitting and collapsing our financial foundations.
Afternoon ramp up commencing as we speak.
Afternoon ramp up is until it isn't
?
It's unheard of to "be talked out of a wire" by your brokerage firm. I doubt it's true, how big of a wire are we talking?
These are "Unheard of" times........
WAT?
Perhaps "Unusually unheard of?" (or is it "uncertainly unheard of?")
DANGER WILL ROBINSON DANGERhttp://www.youtube.com/watch?v=RG0ochx16Dg
I think that Goldman were long on this one and they protect there margin call. I don't know if it's a true story but if it's real then....
Call them back and try it again. Only this time, record the conversation. If they didn't want to wire the money, I would ask, "do you always ask your customers if they REALLY want their money? No? Then why today?"
But first, make sure your affairs are in order.
I got a call asking if “we really needed to wire the money out?"
Of course I do if you are going to ask me not to.
What imbeciles.
Seriously! Too funny. My reply would be "I didn't until you tried to convince me not to."
"Do you really want to wire that money?"
"Uh...yeah. Why do you ask?"
"Oh...no reason...<click>" (broker hits company-wide PANIC button.)
Well I don't see how there could possibly be any kind of problem at all. I thought GS was just a mask the Treasury wears from time to time, and Teh State is doing just fine.
Look at the bond auctions.
(Note to self: buy that case of whiskey TONIGHT.)
Tyler, stay out of Hot Tubs....ala Simmons
+1
I also requested a large wire transfer from Goldman Prime today and was denied. Apparently, you have to be a customer of theirs to get a w/d. I told them I am an American taxpayer, so technically all of their money is mine to begin with.
I then tried to google "nearest goldman sachs branch" so I could walk in and open an account, since they are a Federal Reserve bank and all. All that gave me was a story about some neighborhood that GS destroyed. Apparently, Goldman Prime really is a Transformer.
+100 ;-)
This place is just daily haha's.
+100
That's the joke...GS AIN'T NO BANK!!!!
Yes we heard this from other firm in the past. How can we take your word.
Could it be that they try to talk you out of wiring money out for the same reason that Internet Service Providers try to talk you out of canceling your account? It's a big leap to imply that they have liquidity problems.
From 3:54 to 3:55, what did the ES do?
Strangely, I've been noticing barely perceptible indications of liquidity/money availability problems everywhere, and I doubt most people would even notice some of these things.. little hints in a news article here and there, stuff like that, that point to no other possibility except a money shortage. A couple things came together a few days ago when I was thinking about all the equities/hedge fund redemptions recently, so there could be some hoarding. Of course debt defaults also cause money destruction since the payment stream disappears.
This could be a problem if the Fed were trying to pull liquidity from the system.
They've removed the retail incentive to have cash demand deposits. Might as well keep the money at home than pay someone else to keep it. Also, no one's making any money...
The money has been sucked into the various black holes masquerading as investment opportunities.
Whatever it is, I think most people are taking a hit.
Most shorts coverd last week and the remainder of traders all went long.
It's bad overall.
.
What liquidity problem?...
Get Omaha on the line.
Caveat - Listening to Warren brag next May: "It's now $30 a tick. Tick, tick, tick. I don't want those ticks to go away.
With Goldman's response to the inquiry, I would say short GS now. They used too many descriptives to say "Everything is fantabulous".
Tyler, please save that Goldman email response. It will be used in his upcoming trial.
Oh yeah.. I am in too. Taking out all my vaca cash for next week... tomorrow.
Pink Floyd: "I keep calling, but someone keeps hanging up. Must be someone there besides your wife.... See, he did it again."
Who: "I pick up phones and hear my history..." Quadrophenia
Well, of course GS doesn't want to free up any cash. Don't the execs get their quarterly bonus about now, so of course GSPRIME is a little low on the electronic digits. (lol)
>Hi Tyler:
We have no idea what this rumor could be about. There are absolutely no issues relating our prime brokerage business, and never have been.
Best / Lucas<
HA! They're TOAST!!
LOL!
"Oh shit, they KNOW!!"
*scramble*
No doubt this will be picked up by all the financial blogs/sites and it'll spread like the proverbial wildfire. The effects can be greater than the act itself. It can flush out a comment from GS. That would be tantamount to an admission.
What would you think if your ATM asked you do you really need the money?
Quick Mr. President, hit the internet kill switch!!!
http://news.yahoo.com/s/time/08599200975800
Joe Lieberman is the guy pushing this !!!!!!!!!! He said china has it and america should too !!ll call him !! 1-800-225-5605
liquidty
is so 20 th century ..
it's all about the debt now...
the only way out of a debt crisis
is more debt ...
deficits be damned ..
We,d love to send you the money but we don,t have enough in petty cash or the miscellaneous account ........................ Abosolutely hillarious.A chap I know has been trying to cancel his cable TV by phone but no-one answers so because he can,t cancel he still pays,is this the new business,will the next bank game be no-one acknowledges that you want your cash so you don,t get any ................... buy physical today.
Was the letter from Matt Simmons?
Maybe he was still sending funds to Geo Wash.