Wednesday, February 18, 2009

Goldman Partners Forced to Borrow Money...

...To cover Goldman margin calls! That's what happens when you borrow from your company against its own stock only to see it plummet. Allegedly only a few partners affected. The irony continues - Goldman itself will advise the partners (for a fee) on how to deal with these margin calls...

Courtesy of Gasparino. Sphere: Related Content
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Peatey said...

Sounds like real history repeating:

a passage from the recently published history of Goldman Sachs, “The Partnership,” by Charles D. Ellis.

“Goldman Sachs was fighting for its life all through the Depression and World War II and was profitable in only half of the 16 years from the 1929 crash to the end of the war,” Mr. Ellis wrote. “Most of the partners owed the firm money because their partnership income was less than the moderate ‘draws’ that their families needed to get along.”