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Egan Jones Downgrades Goldman Sachs From A- To BBB+

Tyler Durden's picture





 

The juggernaut continues as Egan Jones exposes a key issue we have been discussing: namely that in the absence of actual trading, banks, which can no longer rely on Net Interest Margin, will have to get smaller, leaner and more efficient, or else lose some of the competition. Such as Bear. Such as Lehman. Maybe, even, such as Knight.

8/10/2012: Goldman Sachs Group Inc/The: EJR lowered A- to BBB+ (S&P: A-) (GS)

 

Synopsis: Dodging a bullet is the good news; the bad news is weaker results, concerns over proprietary positions, and the higher potential for losses. The DoJ's decision not to pursue GS for its role in the 2008 financial crisis is good news, however operating results for the June 12 quarter have weakened. Net revenues declined by 9% from $7.2B to $6.6B. Investment banking revenues were down 14% YoY (up 4% QoQ), with significant declines in equity underwriting. Inst Client Svc were up 11% YoY with the largest increase in mortgage securities and commodities transactions. Investing and Lending was down 80% YoY (down 89% QoQ) and Investment Management was up 5% YoY (up 13% QoQ). The major issues facing GS is the cost of complying with the Volker rule and a still weak IB and trading environment. We are downgrading.

 


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Fri, 08/10/2012 - 13:44 | Link to Comment malikai
malikai's picture

trolololo!

+10000

Fri, 08/10/2012 - 13:50 | Link to Comment redpill
redpill's picture

Downgrading the squid?  Hope they don't like helicopters or hot tubs.

Fri, 08/10/2012 - 13:56 | Link to Comment ZerOhead
ZerOhead's picture

Goldman calls Obama to telll him to downgrade Egan Jones on the Do not Kill List or the check won't clear...

Fri, 08/10/2012 - 13:59 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Goldman - "Will someone please shut this son-of-a-bitch up?"

Fri, 08/10/2012 - 14:41 | Link to Comment disabledvet
disabledvet's picture

I thought "they tried but failed." Didn't CNBC haul them into "CNBC Court" and pronounce them guilty?

Fri, 08/10/2012 - 14:58 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

bbbbbbbitchezzz+++

Fri, 08/10/2012 - 16:13 | Link to Comment True.North
True.North's picture

Guilty of what? Telling the truth? No wonder CNBC has taken a nosedive in the ratings.

Sat, 08/11/2012 - 06:24 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

NBC is in the works to sell CNBC to Disney........now it all makes sense.

 

Fri, 08/10/2012 - 14:58 | Link to Comment LMAOLORI
LMAOLORI's picture

 

 

"Goldman calls Obama to telll him to downgrade Egan Jones on the Do not Kill List or the check won't clear..."


Goldman dodges crisis-related charges twice in one day

Flashback

SEC Keeps Ratings Game Rigged

 

snippet..

 

A case the commission filed last week epitomizes a lot of what's wrong with the agency, even under the supposed overhaul by its chairwoman, Mary L. Schapiro.

The agency brought a civil case against a tiny, iconoclastic ratings agency called Egan-Jones, run by the outspoken Sean Egan, accusing it of, well, essentially filling out forms wrong.

Before the S.E.C. charges, Egan-Jones was best known for two things: having made some bold calls about shaky credit prospects and having a business model that was different than that of the big boys — Moody's Investors Service, Standard & Poor's and Fitch. Mr. Egan's outfit gets paid by the users of his ratings; the oligopoly gets paid by the issuers whose debt is going to be rated.

in full http://www.propublica.org/thetrade/item/sec-keeps-ratings-game-rigged

 

Now let's see if Egan Jones has the balls to go after obama's other favorite banker JP Morgan

'JPM's $150 Billion FDIC Reality Adjustment' - Jamie Dimon Just Admitted To The World That JPM's Assets Are Overvalued By $150 Billion

 

 

JPMorgan Chase Libor Subpoenas Coming From Everybody In The World

 

 

Fri, 08/10/2012 - 14:08 | Link to Comment yrad
yrad's picture

I'm gonna miss Government Sachs...

Fri, 08/10/2012 - 14:22 | Link to Comment knukles
knukles's picture

 

(voice of lady saying "Culligan Man")

Collateral Call

Fri, 08/10/2012 - 14:33 | Link to Comment slaughterer
slaughterer's picture

Goldman Sachs did not deserve that downgrade.  Somebody else did. 

Fri, 08/10/2012 - 16:10 | Link to Comment LongSoupLine
LongSoupLine's picture

Awaiting the "go long GS" call from Stolper...that'll be the nail.

Fri, 08/10/2012 - 13:44 | Link to Comment Frank N. Beans
Frank N. Beans's picture

<crickets>

Fri, 08/10/2012 - 13:45 | Link to Comment Ima anal sphincter
Ima anal sphincter's picture

It doesn't matter....GS still rules the world.

Fri, 08/10/2012 - 13:45 | Link to Comment malikai
malikai's picture

It's still good for a laugh, I'd say.

Fri, 08/10/2012 - 13:45 | Link to Comment govttrader
govttrader's picture

Just wait 6 months for the bankruptcy deals to start flowing...that should give banking and M&A deals a boost...lemmings

http://govttrader.blogspot.com/

Fri, 08/10/2012 - 13:45 | Link to Comment Meesohaawnee
Meesohaawnee's picture

BULLISH!

Fri, 08/10/2012 - 13:47 | Link to Comment LoneStarHog
LoneStarHog's picture

Egan Jones doing the Devil's work against God's servants at Goldman Sucks!

Fri, 08/10/2012 - 13:52 | Link to Comment The Devil
The Devil's picture

All My Children

Fri, 08/10/2012 - 14:15 | Link to Comment Satan
Satan's picture

Do I know you?

Fri, 08/10/2012 - 13:48 | Link to Comment Dr. Engali
Dr. Engali's picture

Now you've gone and done it Sean. I'm sure the squid will have their employees at the SEC turn off the midget tranny porn and do a little deeper digging into your books.

 

Speaking of trannies...transports are rolling over.

Fri, 08/10/2012 - 13:59 | Link to Comment JustObserving
JustObserving's picture

Last time the SEC moved with surprising speed:

 

Egan Jones Downgrades USA From AA+ To AA, Outlook Negative

April 5, 2012

 

Egan-Jones Ratings Co. and Sean Egan Charged with Making Material Misrepresentations to SEC

FOR IMMEDIATE RELEASE
2012-75

Washington, D.C., April 24, 2012 — The Securities and Exchange Commission today announced charges against Egan-Jones Ratings Company (EJR) and its owner and president Sean Egan for material misrepresentations and omissions in the company’s July 2008 application to register as a Nationally Recognized Statistical Rating Organization (NRSRO) for issuers of asset-backed securities (ABS) and government securities. EJR and Egan also are charged with material misrepresentations in other submissions furnished to the SEC and violations of record-keeping and conflict-of-interest provisions governing NRSROs.

 

 

Fri, 08/10/2012 - 14:11 | Link to Comment Hype Alert
Hype Alert's picture

The ratings agencies got a free pass as their opinions are nothing but free speech.  But, yes they must be punished for such vile acts.  More humor for this market, like my stomach isn't hurting enough already.

Fri, 08/10/2012 - 14:24 | Link to Comment ArrestBobRubin
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That's called justice, Shapiro style

Fri, 08/10/2012 - 13:47 | Link to Comment Jlmadyson
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Sogood.gif

Fri, 08/10/2012 - 13:50 | Link to Comment TheInfoman
TheInfoman's picture

What I don't get it that Max Kaiser, et al are always saying GS and others have High Frequency trading machine that make $10Mill a day.  At that rate, they should be awash with cash.

Fri, 08/10/2012 - 13:52 | Link to Comment Meesohaawnee
Meesohaawnee's picture

so will  chucky schumer

Fri, 08/10/2012 - 13:56 | Link to Comment surf0766
surf0766's picture

Kaiser is a socialist

Fri, 08/10/2012 - 14:10 | Link to Comment gmrpeabody
gmrpeabody's picture

Should that preclude him from being wise to the squid?

Fri, 08/10/2012 - 14:21 | Link to Comment Landrew
Landrew's picture

He isn't but you say socialist as though you don't know what it means. To 99% of the world that isn't an insult. 

Fri, 08/10/2012 - 14:24 | Link to Comment surf0766
surf0766's picture

Socialism is a step on the road to communism.

Fri, 08/10/2012 - 14:41 | Link to Comment gmrpeabody
gmrpeabody's picture

Just keep throwing it out there..., eventually something might stick, eh?

FYI.... socialism can also be a step on the road to capitalism, depending on your starting point.

Fri, 08/10/2012 - 17:06 | Link to Comment Lost Wages
Lost Wages's picture

Keiser and Herbert are socially liberal, fiscally conservative. It's called "having a brain."

Fri, 08/10/2012 - 13:58 | Link to Comment malikai
malikai's picture

$10mil a day is nothing to the Squid.

Fri, 08/10/2012 - 14:24 | Link to Comment knukles
knukles's picture

Afternoon Coke and Hooker party :)

Fri, 08/10/2012 - 15:29 | Link to Comment PontifexMaximus
PontifexMaximus's picture

but not on fridays after 16'00

Fri, 08/10/2012 - 13:51 | Link to Comment kliguy38
kliguy38's picture

Just the first steps of many before they short themselves to zero then take themselves private in the end....wash rinse repeat.......they not only love the game ..........they are the game

Fri, 08/10/2012 - 13:51 | Link to Comment mr. mirbach
mr. mirbach's picture

Breaking news - DOJ files Economic Terrorism charges against Eagan Jones....

Fri, 08/10/2012 - 13:51 | Link to Comment Sandmann
Sandmann's picture

How can Goldman Sachs have a low Bond Rating when it owns the US Treasury ?  Won't they have a War Bonds Rally for Goldman to float its boat ?  Surely those words hold true ?

Let every nation know, whether it wishes us well or ill, that we shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe, in order to assure the survival and the success of Goldman Sachs

Fri, 08/10/2012 - 15:17 | Link to Comment FoeHammer
FoeHammer's picture

+1 for lulzy quote

Fri, 08/10/2012 - 13:52 | Link to Comment slaughterer
slaughterer's picture

So where is the 20 point plunge in GS?

Fri, 08/10/2012 - 13:56 | Link to Comment Fail2Deliver
Fail2Deliver's picture

When Goldman builds a short position in  themselves, you will get the crash. As long as they still make money.

Fri, 08/10/2012 - 14:22 | Link to Comment Legolas
Legolas's picture

Further proof that the retail investor has left the market.  A 20 point drop would mean GS plays with itself. 

Fri, 08/10/2012 - 13:54 | Link to Comment Let The Wurlitz...
Let The Wurlitzer Play's picture

Would someone like to tell me how a bunch of ivey league, uber smart, sophisticated, metro sexual geniuses could manage a business to be downgraded to BBB+ (if it is acually that) ???

Please do tell....

Fri, 08/10/2012 - 13:58 | Link to Comment Meesohaawnee
Meesohaawnee's picture

http://finance.yahoo.com/blogs/breakout/goldman-sachs-dodges-criminal-ch...

lookey the matt nesto clown hour says that gs "dodged" criminal charges. dodged. More like paid off  idiot. the clueless continues on being clueless.

Fri, 08/10/2012 - 14:00 | Link to Comment FieldingMellish
FieldingMellish's picture

I <3 you EJ! Squid is best when its deep fried.

Sat, 08/11/2012 - 18:55 | Link to Comment StychoKiller
StychoKiller's picture

Mmm, Calimari!

Fri, 08/10/2012 - 14:04 | Link to Comment yrad
yrad's picture

WTF does this actually mean? GS gets a stock bump?

Fri, 08/10/2012 - 14:05 | Link to Comment Goatboy
Goatboy's picture

Where to find all Egan Jones ratings?

Fri, 08/10/2012 - 14:21 | Link to Comment ArrestBobRubin
ArrestBobRubin's picture

Blankfein is gonna need more botox.

Fri, 08/10/2012 - 14:25 | Link to Comment R. Giskard
R. Giskard's picture

BBB is the new AAA

 

Fri, 08/10/2012 - 14:27 | Link to Comment caimen garou
caimen garou's picture

DOJ, dept of jerks! it's ok as long as your last name is holder,morgan,corzine,or sachs as they are all obamas bastard children!

Fri, 08/10/2012 - 14:32 | Link to Comment Shizzmoney
Shizzmoney's picture

Blankfien: "Someone get the SEC or DOJ on the fucking phone and shut up these assholes!"

I love how the SEC this week says about Goldman, "Hey, nothing to see here!" and.........then Egan Jones downgrades dat ass.  Brilliant.

Fri, 08/10/2012 - 14:46 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Word on the street is that Goldman Sachs has downgraded a world record number of muppets from Moet to Mad Dog 20/20.

http://www.bumwine.com/md2020.html

Fri, 08/10/2012 - 14:47 | Link to Comment AdrenalineTrade
AdrenalineTrade's picture

Bullish

Fri, 08/10/2012 - 15:35 | Link to Comment MachuPicchu
MachuPicchu's picture

Revenge of muppets!

Fri, 08/10/2012 - 17:08 | Link to Comment Lost Wages
Lost Wages's picture

I pray to Goldman Sachs and Hollywood that someone remakes "Revenge of the Nerds" with Muppets.

Fri, 08/10/2012 - 15:56 | Link to Comment pmm009
pmm009's picture

Good call, how many people were around willing and able to bail Knight out of a 5-7 Billion position in one day?????  Little quid pro quo????  Anyone know who sold the 4-5 Billion ES position at market end July 31st??? 

Fri, 08/10/2012 - 16:17 | Link to Comment TideFighter
TideFighter's picture

Just a bit of a drop.

Their morality rating is still FFF junk status.

Fri, 08/10/2012 - 16:20 | Link to Comment TideFighter
TideFighter's picture

Don't think it's only to TBTF banks that are engaged in fraud. Little BancorpSouth Bank frauded their 10k filings, pleaded nolo contendre to the charge (massive class actions piling up) and settled for an undisclosed amount. In totally unrelated news, their CEO is retiring and they issued 100 million dollars of new stock. Wonder what the finds and settlement amounts were?  

Fri, 08/10/2012 - 16:27 | Link to Comment FoeHammer
FoeHammer's picture

http://www.huffingtonpost.com/2012/08/07/morgan-stanley-price-fixing_n_1...

Generate 21.6 mil of revenue, pay 4.8 mil to assuage the muppets. F U MS

Fri, 08/10/2012 - 17:07 | Link to Comment Lost Wages
Lost Wages's picture

Egad! No one told Egan Jones that Goldman Sachs rules the world? You don't downgrade God's credit, bitchez.

Fri, 08/10/2012 - 18:45 | Link to Comment sandhillexit
sandhillexit's picture

It must be true, Manhattan rents are dropping.  Things not bad enough yet to bring back marriage among the 20-somethings though.  Matter of time.

Fri, 08/10/2012 - 19:33 | Link to Comment Under construct...
Under construction...'s picture

It's about time. Next stop, downgrade the JP Morg.

Fri, 08/10/2012 - 19:37 | Link to Comment GoldandSilverTrain
GoldandSilverTrain's picture

That's far too generous of a downgrade for Government Sachs, but I'll take it!

https://miningstockvaluator.com/

 

 

Fri, 08/10/2012 - 19:41 | Link to Comment GMadScientist
GMadScientist's picture

-9%...ooh...thats "two coyote" ugly for a company that barely has a trading day with a loss.

God's work doesn't pay like it used to, eh Blankfein? Fucking dead prick walkin'

Fri, 08/10/2012 - 23:27 | Link to Comment Kasperfx
Kasperfx's picture

llooks like goldmans trying to keep all their dirty little secrets locked up tightly

 


Ex-Goldman programmer charged, again, over code theft

http://in.reuters.com/article/2012/08/09/idINL2E8J9AT020120809

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