Goldman sachs a posted quarterly earnings well below analysts' expectations. Group profit and has collapsed from 83% to 453 million dollars. Looking closer you realize that it is the trading activity of the bank endorses the weak link with a 43% drop in net banking income to 5.29 billion dollars (although the net business finance and investment folds from 36% to 917 million dollars). To explain that the group was justified by the fact that the market environment has become tougher in the second half and he had to pay an almond record 550 million dollars to the SEC (the fellow policeman) to end the investigation for fraud.
But these explanations are not convincing at all. First, even if it is the largest almond history, Goldman Sachs is doing exceedingly well since only the prejudice vis-à-vis investors has been taken into account. Indeed, taking into account the economic harm it would blithely exceeded several hundreds of billions of dollars.
Then, the environment in the second quarter is not any harder than the first quarter and Greece had collapsed. Volatility is identical and the bond spreads were tighter in the first quarter. In fact, following the investigation of fraud, the SEC and a parliamentary committee had access to information concerning the trading activity of Goldman Sachs. The latter was therefore unable to conduct its usual market manipulation. Note that in the first quarter, Goldman Sachs was his flamboyant revenue through its trading activities in which it was speculated against Greece (as we already explained in a previous article) was his client. Having helped Greece to hide its debt and deficit to integrate Europe, Goldman Sachs had any real data on Greece. Thus, it was heavily bought CDS on Greece and began to sell heavily in debt Greek in order to create a panic to raise prices and pocket the CDS implementation. Alas, as everyone knows, this operation was a success for Goldman Sachs macabre.
course, said Greece "will feel" to file a complaint against the bank. However, it seems a waste because Greece will take the risk of revealing information about its grim accounts and operation. Partly for this reason that Goldman Sachs was allowed to do what she did to Greece without incident.
We understand, however, it is not possible to repeat such a thing even as parliamentarians and the SEC (although the latter is known for his kindness in major fraud as Madoff and more recently with Bank of America), noting the activities of the bank and that it begins to seriously annoy the public. The devil has been contained for a quarter, remains to be seen how long the chain will hold.
Alexandre Letourneau
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