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Goldman Exposure To European Banks And Governments: $56 Billion
Since it has become fashionable to expose one's dirty laundry, we would like to simply bring it to our readers' attention that as per the just released Goldman Sachs 10-Q, the bank has revealed that it has $56 billion in pure exposure to European banks and governments, of which the most is to France, followed by Germany and the UK. We have excluded the "other" category as there is absolutely no clarity what "assets" are contained here.
As a reminder here is how Goldman defines its "cross-border" exposure
Cross-border outstandings are based on the Federal Financial Institutions Examination Council’s (FFIEC) regulatory guidelines for reporting cross-border information and represent the amounts that the firm may not be able to obtain from a foreign country due to country-specific events, including unfavorable economic and political conditions, economic and social instability, and changes in government policies.
Credit exposure represents the potential for loss due to the default or deterioration in credit quality of a counterparty or an issuer of securities or other instruments the firm holds and is measured based on the potential loss in an event of non-payment by a counterparty. Credit exposure is reduced through the effect of risk mitigants, such as netting agreements with counterparties that permit the firm to offset receivables and payables with such counterparties or obtaining collateral from counterparties. The tables below do not include the effect of such risk mitigants and does not represent the firm’s credit exposure.
Claims in the tables below include cash, receivables, securities purchased under agreements to resell, securities borrowed and cash financial instruments, but exclude derivative instruments and commitments. Securities purchased under agreements to resell and securities borrowed are presented gross, based on the domicile of the counterparty, without reduction for related securities collateral held.
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Contagion Bitchez
I call shenanigans. This is Mother Fucking Global!
I'm sure they've all gotten rid of half their exposure like JEF.
Farce I tell you...
Weird thing is when these idiots try to hide losses, they just come back meaner and stronger than before. reason why it reared up and bit them last week, they attempted to sit on it, but money doesn't lie. It can be lied about, hidden, filtered, broken or burnt away.
But when that money is debt...someone eventually comes looking for their pound of flesh.
MF Global has another week before they and their associates are raped like a prison pedophiles.
This time though it won't be an inch at a time. The whole 12 inches is going to be serviced.
JEF <3 Egan.
Egan probably saved the company with that downgrade and JEF's knee jerk divestment.
Boot's on the other foot now Goldman Sachs, Too big to fail. lol
In a recent CNBC interview King Leonidis had this to say in Reference to TBTF's- "immortals, We'll put their name to the test."
No clarity required. You can bet the ranch that all of the TBTF banks were swinging for the yield fences here.
Yeah investment bankers really love doing their homework. These bonds yeild 4 percent, oh shit these bonds yield 19 percent......Yes Maria great to be on Sqwak Box we like the bonds yielding 19 percent. They are very attractive.
Eff them. May they rot in hell. And if the GOP House votes to bail them out there will be hell to pay out here in the countryside. (Which I guess means that Teh Bernank will just print another pile of cash or just buy their worthless paper. I'm new at all of this.)
Of course he will print.
This is the call to print.
How can Goldman be exposed to itself...I mean, don't they already own all the foreign governments and banks?
How? By holding their own swaps.
That worked soo well for (IIRC) WF
I'm sorry, but I just can't resist jumping on a Squid-fest.
As excerpted from Hunting the Squid, Part2: Since When Is Enough Derivative Exposure To Blow Up The World Something To Be Ignored?
So, what is the logical conclusion? More phallic looking charts of
blatant, unbridled, and from a realistic perspective, unhedged RISK
starring none other than Goldman Sachs...
And to think, many thought that JPM exposure vs World GDP chart was
provocative. I query thee, exactly how will GS put a real workable
hedge, a counterparty risk mitigating prophylactic if you will, over
that big green stalk that is representative of Total Credit Exposure to
Risk Based Capital? Short answer, Goldman may very well be to big for a
counterparty condom. If that's truly the case, all of you pretty, brand name Goldman counterparties
out there (and yes, there are a lot of y'all - GS really gets around),
expect to get burned at the culmination of that French banking party
I've been talking about for the last few quarters. Oh yeah, that
perpetually printing clinic also known as the Federal Reserve just might
be running a little low on that cheap liquidity antibiotic... Just
giving y'all a heads up ahead of time...
There's plenty more where that came from....
I'm Hunting Big Game Today: The Squid On A Spear Tip
I demonstrate how the market,
the sell side, and most investors are missing one of the biggest
bastions of risk in the US investment banking industry. I will also...
Hunting the Squid Part 3: Reggie Middleton Serves Up Fried Calamari From Raw Squid
Hunting the Squid, part 4: So, What Else Can Go Wrong With Goldman Sachs? Plenty!
Hunting the Squid, Part 5: Sometimes Your Local Superhero Doesn't Look Like What They Show You In The Movies
these clowns have just annihilated Greece and they did it from Berlin. Well..."reap the whirlwind" phuckers. We'll see if New York City "breaks under the waves" as well.
Excellent digestion.
My bowels have now cleansed themselves amongst the leather and metal of my office.
This area is now known officially as the Goldman shitcarpet.
Oh nozers! If the Cayman Islands go, GS will implode...
Tyler, is this direct exposure and not through various derivative instruments?
That OTHER column is mighty interesting.
Net exposure? Why stop there. Let's talk net,net,net.
Insolvency -- the inability to pay ones debts.
No bonuses for you sweetie.
this was before they will find some lost 58 billion , and show a profit..on Bizarro World whne you go belly up you get rich beyond all imagination.
imho that exposure in the form of swaps timebombs, which GS is pretty deft at making sure they detonate in the other party's face.
I imagine that's their plan anyway.
Goldman's exposure... $ Trillions... let's not forget the Interest based CDS. Fu*k 'em.
What don't you understand about "netting"?
They won't lose anything, they are GoldmanFuckingSachs!
So don't worry about GS. If anything goes wrong you'll be bailing out GS.
Again
The "Other" is for their backup plan. When they do finally get chucked off the face of the earth they have 32 billion stashed in the Cayman Islands for a quick tax free getaway and beach retirement. You see after Sarbanes Oxley firms are now accountable for reporting numbers that the public can make sense out of.
whats in the Caymen islands?
Its a beach resort with some
Carib Bnkng Ctrs. which will allow you to not pay taxes.This is bullish! No, really!
If G-S stands to lose big-time somewhere, you can bet things will start happening to make their position suddenly "better", and a bunch of their clients will find themselves having been frontrun again!
In a game this rigged, what does the fiat label on anything mean?
Goldman European exposure at $56 billion means US taxpayer exposure to Goldman is $56 billion.
"Credit exposure is reduced through the effect of risk mitigants, such as netting agreements "
Stop right there.
We all know that gross IS net when the SHTF. Good night GS.
When a table's biggest cateogry is Other, I would recommend you discard it immediately.