Goldman Sachs

The Goldman Sachs Group, Inc. NYSE: GS (referred to as GS, or just Goldman) is an investment bank. The firm was founded in 1869. Headquartered in downtown New York City at 85 Broad Street ([1]), Goldman operates globally with offices in leading financial centers, e.g. New York City, Frankfurt, London, Hong Kong and Tokyo.

Goldman is mostly involved in wholesale financial services, although it has a newer and growing Private Client Services arm. Its largest area of activity is proprietary trading, that is, executing trades for its own profit with its own money. In fact, investment banking accounts for only 5 percent of Goldman's profits.

Quick facts

  • Employed 20,722 people at the end of November 2004.
  • Pre-tax earnings in the 2003 fiscal year ending November 30 were $4.445 billion.
  • The CEO is Hank Paulson.

Lines of Business

Goldman Sachs is divided into three different lines of business: Investment Banking, Trading and Principal Investments, and Asset Management and securities services.

Investment Banking includes traditional investment banking, and mergers and acquisitions (M&A) advisory. Goldman Sachs is one of the leading investment banks, topping the league tables many times, especially in equity operations. In mergers and acquisitions, it gained fame historically by advising clients on how to avoid a hostile takeover. Goldman Sachs, for a long time during the 1980s, was the only major investment bank with a strict policy against helping to initiate a hostile takeover, which increased the firm's reputation immensely. This segment accounts for around 15 percent of Goldman Sach's revenues.

Trading and Principal Investments is the largest segment and profit center for Goldman. This segment consists of the revenues and profit gained from the Bank's trading activities, both on behalf of its clients and for its own account (called proprietary trading). Many trades however are done for both reasons. Most trading done by Goldman is not a "bet" of a particular outcome in the market, but rather attempting to sell something for an incrementally greater amount of money it was forced to buy something for, in the process of acting as a market maker. Like the rest of the Investment Banking industry, this occurs primarily in the bond market. Around 65 percent of Goldman's revenues and profits are from this area. Upon its IPO, Goldman predicted that this segment would not grow as fast as its Investment Banking division and would be responsible for a shrinking proportion of earnings. The opposite has been true, however.

The final segment is Asset Management and securities services. "Asset Management" is an industry term for mutual funds, of which Goldman runs many. This segment accounts for around 19 percent of Goldman's earnings. "Securities services" is mostly a reference to Prime brokerage, which is a stock brokerage for hedge funds that executes many trades and is a particularly profitable division within Goldman Sachs.

History

Goldman Sachs was founded by Marcus Goldman as a business which assisted other businesses in borrowing money via commercial paper (very short term loans). It grew organically from this base, but suffered a major setback when it setup what would be called today a giant hedge fund (Goldman Sachs Trading Co.) in 1929 which crashed in the resulting great depression. This damaged its repuation for a long time.

Sydney Weinberg became the head of Goldman Sachs. He was a relentless salesman, trying to befriend as many leaders of top businesses and governments as possible. His close friendship with the Ford family allowed Goldman Sachs to arrange for the Ford IPO, the largest in the world at that time. This was a major coup for the company which enhanced its reputation greatly. Others at Goldman realized that essentially all new business was brought in from Weinberg, and so instituted an outbound sales force to attempt to become less reliant on Weinberg. This had never been done before in investment banking.

Gustave Levy took over after Weinberg. He came from the firms trading department, and got Goldman Sachs into the business of trading for its own profit (its major source of profit today). John Whitehead and Weinbergs son next took over. They commited Goldman Sachs to expand internationally.

Alumni of Goldman Sachs

Many former partners of Goldman Sachs have gone on to hold prominent public positions including Robert Rubin the United States Secretary of the Treasury under Bill Clinton, Jon Corzine currently a United States Senator from New Jersey, and John Thain currently the CEO of the New York Stock Exchange. Also, Steven Friedman was Chairman of George W. Bush's National Economic Council, incidentally the position Rubin held before moving to Treasury.

Another former partner, Jack Ryan (Senate candidate), withdrew from his bid for the open United States Senate seat in Illinois after embarrassing allegations about his sexual past.

Apart from political careers, alumni of Goldman Sachs seek entrepreneurship and excel there:

  • J Christopher Flowers, a former partner who set up J.C. Flowers & Company, he is a member of the Forbes 400 list.
  • Edward S Lampert, a former protégé of Robert Rubin and founder of ESL Investments, is a member of the Forbes 400.

Scandals involving Goldman Sachs

Joyti De-Laurey

Joyti De-Laurey was convicted eleven to one in April 2004 by a UK jury for stealing more than £4m by forging cheques.

A spokesman for Goldman Sachs described the thefts as "gross abuse of trust and an extremely unpleasant incident for all those affected". The Financial Times called her a "queen of deceit", Scott Mead, the executive whose signature De-Laurey forged, called her a "Picasso of con-men— she was brilliant". Another previous boss of hers, Ron Beller said she was "a very clever con artist". She also worked for Jennifer Beller.

Critics have suggested that the case has been over-stated, as forging cheques does not require exceptional intelligence. Also, claims that forgeries were exceptional are questionable as another witness to the case, Ms. Sophie Pemberton, who is another employee of Mead's, stated that Mead "never signed anything" and that she regularly forged his signature.

De-Laurey's story was made into a television movie broadcast by the BBC on June 8, 2005. Titled The Secretary Who Stole £4 Million, it starred Meera Syal as Joyti De-Laurey, and featured contributions from her friends, family and co-workers.

Misleading analysis of telecommunications companies

In a statement issued by William Donaldson, chairman of the US securities and exchange commission on October 31st 2003, he said Bear Stearns, Credit Suisse First Boston, Goldman Sachs, Lehman Brothers, Merrill Lynch, Piper Jaffray, Salomon Smith Barney, and UBS Warburg (now known as UBS Securities) ("UBS") issued research reports that were not based on principles of fair dealing and good faith and did not provide a sound basis for evaluating facts, contained exaggerated or unwarranted claims about the covered companies, and/or contained opinions for which there were no reasonable bases in violation of New York Stock Exchange ("NYSE") Rules 401, 472 and 476(a)(6), and NASD, Inc., Rules 2110 and 2210 as well as state ethics statutes.

An analyst, Craig Kloner, when asked what his three most important goals for 2000 were, said "to get more investment banking revenue" ([2]) ([3]).

The Financial Times called it "the worst financial scandal in a generation". Donaldson fined Goldman-Sachs US$110m, and the investment banks as a whole $1.4bn ([4]) in the so called "global settlement".

Criticisms against Goldman Sachs

In 2002, Goldman Sachs paid US$ 1.65 million in fines for allegedly violating e-mail record keeping requirements. In 2003, Goldman Sachs paid US$ 110 million as part of the settlement over research improprieties when New York State Attorney General, Eliot Spitzer, fined Wall Street for bad behavior. In 2003, the company agreed to pay US$ 4.3 million in restitution and a US$ 5 million in penalty related to improper trading in US Treasury Securities and futures. In 2004, Goldman Sachs agreed to pay US$ 2 million to the Securities and Exchange Commission (SEC) for settling charges of promoting an IPO before the IPO registration became effective. The SEC also alleged that Goldman Sachs spoke to the media about an IPO by PetroChina before an initial registration was filed. Goldman Sachs also raked in hundreds of millions in fees for underwriting companies like PlanetRx.com, Webvan, etc., which later went bankrupt. Spear Leeds, a firm Goldman Sachs bought in 2000 and renamed as Goldman Sachs Execution & Clearing LP, had to pay US$ 45.3 million to the National Association of Securities Dealers (NASD) in 2004 to settle charges that it traded ahead of customers. In 2005, Goldman Sachs Execution & Clearing LP was fined US$ 1 million by NASD for hiding IPO allocations from the Depository Trust Corporation.

Diversity

Goldman Sachs received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report. In addition, the company was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine.

References

Goldman Sachs: The Culture of Success. Lisa Endlich. Little, Brown and Company. 1999. ISBN 0316643734


This page about Goldman Sachs includes information from a Wikipedia article.
Additional articles about Goldman Sachs
News stories about Goldman Sachs
External links for Goldman Sachs
Videos for Goldman Sachs
Wikis about Goldman Sachs
Discussion Groups about Goldman Sachs
Blogs about Goldman Sachs
Images of Goldman Sachs

ISBN 0316643734. Today, PricewaterhouseCoopers brands its consulting activities through the Advisory name. 1999. The selling of this profitable arm of the firm was a result of public pressure on all the Big Four audit firms, as it is seen to be a conflict of interest for an audit firm to be offering non-audit services to clients. Little, Brown and Company. In August 2003, IBM revealed that the actual value of the deal was closer to $3.9 billion. Lisa Endlich. In October 2002 PricewaterhouseCoopers sold PwC Consulting, its professional consulting arm, to IBM for approximately $3.5 billion in cash and stock.

Goldman Sachs: The Culture of Success. These plans were soon revised, however. In addition, the company was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine. (See also related article on rebranding.). Goldman Sachs received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report. During 2000, rival firm Arthur Andersen had spun off its consulting activities as Accenture. In 2005, Goldman Sachs Execution & Clearing LP was fined US$ 1 million by NASD for hiding IPO allocations from the Depository Trust Corporation. This unusual branding effort occurred in part as a response to one of the firm's rivals.

Spear Leeds, a firm Goldman Sachs bought in 2000 and renamed as Goldman Sachs Execution & Clearing LP, had to pay US$ 45.3 million to the National Association of Securities Dealers (NASD) in 2004 to settle charges that it traded ahead of customers. According to a June 2002 BBC news article, the firm's CEO, Greg Brenneman described the unusual name as "a real word, concise, recognisable, global and the right fit for a company that works hard to deliver results.". Goldman Sachs also raked in hundreds of millions in fees for underwriting companies like PlanetRx.com, Webvan, etc., which later went bankrupt. An outside consultancy, Wolf Olins, was hired to create a brand image for the new entity, which was introduced to the public as "Monday". The SEC also alleged that Goldman Sachs spoke to the media about an IPO by PetroChina before an initial registration was filed. The firm announced in May 2002 that its consulting activities would be spun off as an independent entity. In 2004, Goldman Sachs agreed to pay US$ 2 million to the Securities and Exchange Commission (SEC) for settling charges of promoting an IPO before the IPO registration became effective. PwC planned to capitalize one these development through either a sale to possible suitors like HP and Microsoft or to spin off the division as a separate company.

In 2003, the company agreed to pay US$ 4.3 million in restitution and a US$ 5 million in penalty related to improper trading in US Treasury Securities and futures. During the time of the dotcom era, many smaller consultancies capitalized on the tremendous wealth generated in the equity markets. In 2003, Goldman Sachs paid US$ 110 million as part of the settlement over research improprieties when New York State Attorney General, Eliot Spitzer, fined Wall Street for bad behavior. The Management Consulting Services (MCS) was one of fastest growing and most profitable areas of the consultancy. In 2002, Goldman Sachs paid US$ 1.65 million in fines for allegedly violating e-mail record keeping requirements. Though the firm's core business is accountancy, it also ran a huge professional consulting branch, as did other major accountancy firms. Donaldson fined Goldman-Sachs US$110m, and the investment banks as a whole $1.4bn ([4]) in the so called "global settlement". PricewaterhouseCoopers had already decided to sell its technology consulting practice to IBM by this point.

The Financial Times called it "the worst financial scandal in a generation". This forced many of the Big Four to divest their interests in technology consulting. An analyst, Craig Kloner, when asked what his three most important goals for 2000 were, said "to get more investment banking revenue" ([2]) ([3]). One such result was the adoption of the Sarbanes-Oxley Act, which required auditor independence and separation of internal audit from general consulting. In a statement issued by William Donaldson, chairman of the US securities and exchange commission on October 31st 2003, he said Bear Stearns, Credit Suisse First Boston, Goldman Sachs, Lehman Brothers, Merrill Lynch, Piper Jaffray, Salomon Smith Barney, and UBS Warburg (now known as UBS Securities) ("UBS") issued research reports that were not based on principles of fair dealing and good faith and did not provide a sound basis for evaluating facts, contained exaggerated or unwarranted claims about the covered companies, and/or contained opinions for which there were no reasonable bases in violation of New York Stock Exchange ("NYSE") Rules 401, 472 and 476(a)(6), and NASD, Inc., Rules 2110 and 2210 as well as state ethics statutes. The 2002 indictment of Enron and WorldCom and the subsequent collapse of Arthur Andersen resulted in stringent SEC rules on auditor independence. Titled The Secretary Who Stole £4 Million, it starred Meera Syal as Joyti De-Laurey, and featured contributions from her friends, family and co-workers. The following year, merger discussions between PwC and Grant Thornton failed.

De-Laurey's story was made into a television movie broadcast by the BBC on June 8, 2005. In 1998, Price Waterhouse and Coopers & Lybrand merged to form PricewaterhouseCoopers. Sophie Pemberton, who is another employee of Mead's, stated that Mead "never signed anything" and that she regularly forged his signature. Coopers & Lybrand lost a majority of its market share in the 1980s when mergers reduced the Big Eight to the Big Six. Also, claims that forgeries were exceptional are questionable as another witness to the case, Ms. In the 1970s, Coopers & Lybrand studied ways to incorporate technology into automating the auditing process. Critics have suggested that the case has been over-stated, as forging cheques does not require exceptional intelligence. Coopers & Lybrand was essentially an auditing firm.

She also worked for Jennifer Beller. & Montgomery and the Cooper Brothers. Another previous boss of hers, Ron Beller said she was "a very clever con artist". Coopers & Lybrand, the product of a 1957 merger between Lybrand, Ross Bros. The Financial Times called her a "queen of deceit", Scott Mead, the executive whose signature De-Laurey forged, called her a "Picasso of con-men— she was brilliant". The firm benefitted from tough auditing requirements that arose from the Great Depression. A spokesman for Goldman Sachs described the thefts as "gross abuse of trust and an extremely unpleasant incident for all those affected". Price Waterhouse's offices in the United States were open in the 1890s.

Joyti De-Laurey was convicted eleven to one in April 2004 by a UK jury for stealing more than £4m by forging cheques. By the late 1800s, Price Waterhouse had gained significant recognition as an accounting firm. Apart from political careers, alumni of Goldman Sachs seek entrepreneurship and excel there:. A few years later, he took on Edwin Waterhouse as a partner of the firm, leading to the birth of Price Waterhouse. Another former partner, Jack Ryan (Senate candidate), withdrew from his bid for the open United States Senate seat in Illinois after embarrassing allegations about his sexual past. Samuel Price, an accountant, founded the firm in London in 1850. Bush's National Economic Council, incidentally the position Rubin held before moving to Treasury. PwC's other large clients include American International Group, The Home Depot, Bank of America, JP Morgan Chase, Tesco and Unilever.

Also, Steven Friedman was Chairman of George W. PwC also audits four of the 10 largest companies in the United Kingdom (GlaxoSmithKline, Shell, Barclays and Lloyds TSB Group). Many former partners of Goldman Sachs have gone on to hold prominent public positions including Robert Rubin the United States Secretary of the Treasury under Bill Clinton, Jon Corzine currently a United States Senator from New Jersey, and John Thain currently the CEO of the New York Stock Exchange. As of March 2005, PricewaterhouseCoopers' audit clients included four of the 10 largest public companies in the United States (Exxon Mobil Corporation, Ford Motor Company, ChevronTexaco and IBM). They commited Goldman Sachs to expand internationally. The firm's dominant practice is Assurance, which accounts for over 50% of PwC's revenue. John Whitehead and Weinbergs son next took over. Europe and North America account for about 82% of PwC's annual revenue, with Europe alone accounting for 45%.

He came from the firms trading department, and got Goldman Sachs into the business of trading for its own profit (its major source of profit today). According to statistics compiled by the firm from third party sources, PwC ranks in as the number 1 employer of choice among the Big 4 in student recruiting surveys from 12 countries including China, Germany, United Kingdom and the United States [2]. Gustave Levy took over after Weinberg. PricewaterhouseCoopers is one of the top 10 companies for working mothers in 2004 according to Working Mother Media. This had never been done before in investment banking. PwC audits 37 per cent of the FTSE 100; 22 per cent of the FT Asia Pacific 100 and 43% per cent of the Fortune 1000. Others at Goldman realized that essentially all new business was brought in from Weinberg, and so instituted an outbound sales force to attempt to become less reliant on Weinberg. The firm also has in-house human resource services and legal services (through its correspondent global legal firm, Landwell).

This was a major coup for the company which enhanced its reputation greatly. PwC's service lines are further divided into Consumer and Industrial Products and Service (CIPS), Financial Services (FS) and Technology, Infocomm and Entertainment (TICE). His close friendship with the Ford family allowed Goldman Sachs to arrange for the Ford IPO, the largest in the world at that time. PricewaterhouseCoopers has three main service lines — Tax, Audit and Assurance and Advisory. He was a relentless salesman, trying to befriend as many leaders of top businesses and governments as possible. DiPiazza Jr, a 45 year old partner of the erstwhile Coopers & Lybrand. Sydney Weinberg became the head of Goldman Sachs. The current global CEO is Samuel A.

This damaged its repuation for a long time. These 'sister' firms are governed by a global board of partners. It grew organically from this base, but suffered a major setback when it setup what would be called today a giant hedge fund (Goldman Sachs Trading Co.) in 1929 which crashed in the resulting great depression. The legal structure of a partnership is very different to that of a company, and as such the global firm is in fact a collection of member firms, that are run autonomously in their respective jurisdictions. Goldman Sachs was founded by Marcus Goldman as a business which assisted other businesses in borrowing money via commercial paper (very short term loans). . "Securities services" is mostly a reference to Prime brokerage, which is a stock brokerage for hedge funds that executes many trades and is a particularly profitable division within Goldman Sachs. PricewaterhouseCoopers is head quartered in New York City, United States.

This segment accounts for around 19 percent of Goldman's earnings. PwC is one of the Big Four, along with KPMG, Ernst & Young and Deloitte Touche Tohmatsu, and was formed in 1998 from a merger between Price Waterhouse and Coopers & Lybrand. "Asset Management" is an industry term for mutual funds, of which Goldman runs many. There are over 120,000 people employed by the global partnership, in 144 countries around the world, working in four lines of service and 22 industry-specialised practices. The final segment is Asset Management and securities services. PricewaterhouseCoopers LLP (or PwC) is the largest professional services firm and the 6th largest private company in the world [1]. The opposite has been true, however. Sarbanes-Oxley Act.

Upon its IPO, Goldman predicted that this segment would not grow as fast as its Investment Banking division and would be responsible for a shrinking proportion of earnings. Big Four auditors. Around 65 percent of Goldman's revenues and profits are from this area. Like the rest of the Investment Banking industry, this occurs primarily in the bond market. Most trading done by Goldman is not a "bet" of a particular outcome in the market, but rather attempting to sell something for an incrementally greater amount of money it was forced to buy something for, in the process of acting as a market maker.

Many trades however are done for both reasons. This segment consists of the revenues and profit gained from the Bank's trading activities, both on behalf of its clients and for its own account (called proprietary trading). Trading and Principal Investments is the largest segment and profit center for Goldman. This segment accounts for around 15 percent of Goldman Sach's revenues.

Goldman Sachs, for a long time during the 1980s, was the only major investment bank with a strict policy against helping to initiate a hostile takeover, which increased the firm's reputation immensely. In mergers and acquisitions, it gained fame historically by advising clients on how to avoid a hostile takeover. Goldman Sachs is one of the leading investment banks, topping the league tables many times, especially in equity operations. Investment Banking includes traditional investment banking, and mergers and acquisitions (M&A) advisory.

Goldman Sachs is divided into three different lines of business: Investment Banking, Trading and Principal Investments, and Asset Management and securities services. . In fact, investment banking accounts for only 5 percent of Goldman's profits. Its largest area of activity is proprietary trading, that is, executing trades for its own profit with its own money.

Goldman is mostly involved in wholesale financial services, although it has a newer and growing Private Client Services arm. New York City, Frankfurt, London, Hong Kong and Tokyo. Headquartered in downtown New York City at 85 Broad Street ([1]), Goldman operates globally with offices in leading financial centers, e.g. The firm was founded in 1869.

NYSE: GS (referred to as GS, or just Goldman) is an investment bank. The Goldman Sachs Group, Inc. Edward S Lampert, a former protégé of Robert Rubin and founder of ESL Investments, is a member of the Forbes 400. Flowers & Company, he is a member of the Forbes 400 list.

J Christopher Flowers, a former partner who set up J.C. The CEO is Hank Paulson. Pre-tax earnings in the 2003 fiscal year ending November 30 were $4.445 billion. Employed 20,722 people at the end of November 2004.

12-22-14 FTPPro Support FTPPro looks and feels just like Windows Explorer Contact FTPPro FTPPro Help Topics FTPPro Terms Of Use ftppro.com/1stzip.php ftppro.com/zip ftppro.com/browse2000.php PAD File Directory Business Search Directory Real Estate Database FunWebsites.org PressArchive.net WebExposure.us Display all your websites in one place HereIam.tv Celebrity Homepages Charity Directory Google+ Directory Move your favorite Unsigned Artist to the Top of the List