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View Full Version : Bailed-out Goldman Sachs profit soars to 3.44 bln dlrs


tony hipchest
07-14-2009, 08:36 PM
http://www.google.com/hostednews/afp/article/ALeqM5ijTL9gzIW5XKPH-ltVrRTmfRn5vw

nothing too earth shattering. typical profits from getting in at the markets bottom, but its nice to see the gubment getting some of its money back, plus any good news is good news at this point.



NEW YORK (AFP) — Wall Street giant Goldman Sachs on Tuesday posted a forecast-busting 3.44 billion dollars in quarterly profit after paying back a US government bailout, suggesting the financial crisis is easing.

Goldman, which reimbursed a 10-billion-dollar federal bailout in full in the second quarter, said its net profit soared 65 percent thanks to robust trading operations.

The prestigious financial firm is the first of the "big guns" in the sector to report second-quarter results. It saw earnings per share of 4.93 dollars, besting analysts' forecast of 3.54 dollars.

Investors are keenly awaiting the round of quarterly results to see whether massive public aid and better conditions in the stock market have positioned the ailing sector for recovery.

"While markets remain fragile and we recognize the challenges the broader economy faces, our second-quarter results reflected the combination of improving financial market conditions and a deep and diverse client franchise," Lloyd Blankfein, chairman and chief executive, said in a statement.

Goldman, the last of the major Wall Street investment banks left standing after the financial meltdown late last year, said the results included its payback of government aid under the Treasury's 700-billion-dollar Troubled Asset Relief Program (TARP).

The bailout program was launched as the global financial crisis accelerated after the collapse of rival Lehman Brothers in September.

The government has poured billions into the financial sector in an effort to unblock frozen credit and pull the economy from the worst recession since the Great Depression.

Last month Goldman was among 10 major US banks repaying the Treasury for the capital injections, in a sign of a stabilizing financial system.

A number of firms were eager to get out from under the TARP, in part to escape federal scrutiny of executive compensation.

The New York-based Goldman repurchased the 10 billion dollars in preferred shares taken by the government in October and paid a dividend of 425 million dollars.

Goldman said that excluding that dividend, second-quarter earnings per share were 5.71 dollars.

As expected, trading was the key profit driver for the investment bank, which converted to a commercial bank amid the financial meltdown last year to gain access to Federal Reserve resources.

"Goldman Sachs is living up to every bit of its expectations on how it is routinely and systematically taking money out of the markets in its trading activities," said Jon Ogg of 24/7WallSt.com.

During the quarter, the Dow Jones Industrial Average put in its best performance in six years.

fansince'76
07-14-2009, 09:10 PM
That is good news! Nice to hear some for a change. :applaudit:

MACH1
07-14-2009, 09:19 PM
Yup...And not one cent of taxes were paid on that.
And to top it off they have 10% share of the Chicago Climate Exchange.

"The bank owns a 10 percent stake in the Chicago Climate Exchange, where the carbon credits will be traded. Moreover, Goldman owns a minority stake in Blue Source LLC, a Utah-based firm that sells carbon credits of the type that will be in great demand if the bill passes. Nobel Prize winner Al Gore, who is intimately involved with the planning of cap-and-trade, started up a company called Generation Investment Management with three former bigwigs from Goldman Sachs Asset Management, David Blood, Mark Ferguson and Peter Harris. Their business? Investing in carbon offsets.
Link (http://www.corbettreport.com/articles/20090702_banksters_cap_trade.htm)

tony hipchest
07-14-2009, 09:30 PM
bu.. bu... bu... gore?

:toofunny:

i thought you ribs loved capitalizing off of anything and everything (even if its nothing) and not paying taxes? :noidea:

MACH1
07-14-2009, 09:36 PM
bu.. bu... bu... gore?

:toofunny:

i thought you ribs loved capitalizing off of anything and everything (even if its nothing) and not paying taxes? :noidea:

I'd love to not pay taxes, especially if it was on a few billion. Thats where it's effed up, tax the life out of the little people and let a cool billion slide by like nothing happened.

What happened to that obaaama promise of closing the loopholes? Just another lie.


bu...bu....bu....I promise

tony hipchest
07-14-2009, 09:44 PM
as one of the little people, i'd love to not pay for the entire US banking industry (and global economy) collapsing.

tony hipchest
07-14-2009, 10:19 PM
Link (http://www.corbettreport.com/articles/20090702_banksters_cap_trade.htm)


The Corbett Report provides podcasts, interviews, articles and videos about breaking news and important issues from 9/11 Truth and false flag terror to the Big Brother police state, eugenics, geopolitics, the central banking fraud and more.





well, if this guy says it, it MUST be true! :chuckle:

so are you saying that out of 503+ million outstanding shares of goldman sachs not a single dime of that $4.93 profit/share was taxed?

i gots to get me some of dat! (especially when they closed at $149.90 and their 52 week low was $47.41)

http://online.wsj.com/public/quotes/main.html?type=djn&symbol=GS

:danceshout: capitalism is alive and well in america! buy low, sell high! :tt03:

steelax04
07-15-2009, 09:08 AM
I'm just happy they paid it back and didn't hide it somewhere...

Fire Haley
07-15-2009, 09:17 AM
Don't worry - you're paying for it, MR Taxpayer.

tax tax tax tax TOILET PAPER tax tax tax SOAP tax tax tax

The bill calls for a 0.15% tax on any corporation earning a profit of more than $4 million a year. Manufacturers of any water-based beverages, excluding alcohol, would see a four-cent tax per container. Soaps, detergents, toiletries, toilet tissue, water softeners and cooking oils would face a 3% tax on wholesale prices. Pharmaceuticals would be taxed at 0.5% of the wholesale price.

http://online.wsj.com/article/SB124761944347442547.html




http://conservativeamericanvet.files.wordpress.com/2009/05/obama_tax_hikes.jpg

tony hipchest
07-15-2009, 10:15 AM
profits = good. losses = bad.

life was so much better when we shit in an outhouse, and used a bucket to draw water from a well.

plus, using a stick of lard and a wash tub and wash board were so much fun to use.

X-Terminator
07-15-2009, 10:19 AM
Don't worry - you're paying for it, MR Taxpayer.

tax tax tax tax TOILET PAPER tax tax tax SOAP tax tax tax

The bill calls for a 0.15% tax on any corporation earning a profit of more than $4 million a year. Manufacturers of any water-based beverages, excluding alcohol, would see a four-cent tax per container. Soaps, detergents, toiletries, toilet tissue, water softeners and cooking oils would face a 3% tax on wholesale prices. Pharmaceuticals would be taxed at 0.5% of the wholesale price.

http://online.wsj.com/article/SB124761944347442547.html




http://conservativeamericanvet.files.wordpress.com/2009/05/obama_tax_hikes.jpg

And yet, we have people who think this is a good idea. By the time Obama gets done with America, we'll be lucky to have enough money to buy a double cheeseburger off of McDonald's Dollar Menu without busting the monthly budget.

Fire Haley
07-15-2009, 10:28 AM
I propose a fat tax on fried chicken.

It'll be worth BILLIONS

tony hipchest
07-15-2009, 10:55 AM
And yet, we have people who think this is a good idea. By the time Obama gets done with America, we'll be lucky to have enough money to buy a double cheeseburger off of McDonald's Dollar Menu without busting the monthly budget.

and now... for the rest of the story-

WASHINGTON—A bipartisan group of lawmakers is proposing to raise about $10 billion a year to fix aging water and sewer systems by taxing the biggest users.

The legislation, which has sparked significant opposition from industry, is expected to be unveiled Wednesday at a news conference on Capitol Hill.


nope, dont see obamas name in there.

Rep. Earl Blumenauer (D., Ore.), the main sponsor of the Water Protection and Reinvestment Act, said he believed the bill was necessary to repair an aging system used by all Americans. The taxes, he said, would target some of the biggest users of water and companies that have the biggest stake in the efficiency of the system. He called the fees modest and fair.

The federal government has paid an average of $2.3 billion each year since 2000 to help maintain the water system. A spokeswoman for Mr. Blumenauer said the trust fund created under the bill would bring in about $10 billion a year.

Concerns about the safety and integrity of water systems is a perennial concern, particularly in older cities. Recent water-main breaks in New York City have disrupted traffic and transit.


do you use the bridges in pgh? isnt a good idea to repair that aging infrastructure to not see a twin city disaster?

revefsreleets
07-15-2009, 11:06 AM
Two Trillion.We should fix EVERYTHING and make it 200 trillion. Who's counting? Spend it all! Yippee!

X-Terminator
07-15-2009, 11:51 AM
and now... for the rest of the story-



nope, dont see obamas name in there.



do you use the bridges in pgh? isnt a good idea to repair that aging infrastructure to not see a twin city disaster?

But it's just another bill that's going to cost taxpayers money at a time when they're already crunching their wallets in order to make ends meet. Let's get the economy back on track first, then come back and ask for more money. It's not too much to ask.

tony hipchest
07-15-2009, 12:54 PM
But it's just another bill that's going to cost taxpayers money at a time when they're already crunching their wallets in order to make ends meet. Let's get the economy back on track first, then come back and ask for more money. It's not too much to ask.before the massive effort of spin and deflection in this thread, it was about a company that was in crisis, turning it around and giving back "the tax payers" 10 bil.

Wall Street giant Goldman Sachs on Tuesday posted a forecast-busting 3.44 billion dollars in quarterly profit after paying back a US government bailout, suggesting the financial crisis is easing.

Goldman, which reimbursed a 10-billion-dollar federal bailout in full in the second quarter

"bad goldman sachs.... bad, bad!" :poop:

unbelievable.

revefsreleets
07-15-2009, 12:59 PM
Errrr...bu-bu-Bush?

I mean, this WAS Bush's bill. It WAS the "Emergency Economic Stabilization Act of 2008". Obama wasn't, as far as I can recall, actually President in 2008.

Anyway, looks like it worked.

Or are we going to give Obama credit for this one?

Fire Haley
07-15-2009, 01:02 PM
Will people stop buying soap and toilet paper?

We can be just like like the European Socialists!


Although I do think it's time we pull all our troops from Europe and let them pay for their own damn defense.

tony hipchest
07-15-2009, 01:15 PM
Anyway, looks like it worked.

Or are we going to give Obama credit for this one?

im not the one obsessively bringing up obama in every single thread.

this is about a troubled financial company shattering 2nd quarter earnings estimates, and paying back all its tarp fundage.

:hunch:

as suspected, the spin doctors wanna bu bu blame obama for profit, totally forgetting this is from bush's stimulus.

KeiselPower99
07-15-2009, 01:39 PM
Over half of my income could be taxed??? BULLSHIT!!!!!

tony hipchest
07-15-2009, 01:41 PM
Over half of my income could be taxed??? BULLSHIT!!!!!wrong thread.

X-Terminator
07-15-2009, 01:44 PM
before the massive effort of spin and deflection in this thread, it was about a company that was in crisis, turning it around and giving back "the tax payers" 10 bil.



"bad goldman sachs.... bad, bad!" :poop:

unbelievable.

Well, here's one for you: I think it's silly that anyone would complain about GS giving back $10 billion to the government when most of us were against the bailouts in the first place. They deserve some credit for doing the right thing, not nitpicky ridicule.

There, ya happy?

Fire Haley
07-15-2009, 01:50 PM
Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman
Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman

If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.

Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman
Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me.

MACH1
07-15-2009, 04:52 PM
well, if this guy says it, it MUST be true!

No less credible than msnbc, nbc, cbs, cnn and abc. Why if it weren't for them no one would know how hard were going to be taking it in the behind. :rolleyes:

:flap:

tony hipchest
07-15-2009, 09:34 PM
good news tends to have a snowball effect on the market.

Rally Drives Best Day for Stocks This Quarter

http://www.cnbc.com/id/31926928

Opinions on the rally are all over the map:

1) it's an options squeeze

2) hedge funds have been caught short

But others note that this is the first time we have seen a string of positive pieces of news...from Intel, Goldman Sachs, CSX, credit cards. Remember the bull thesis: that dramatic cost-cutting means any signs of topline improvement will translate more effectively to the bottom line.

One complaint: volume is light!

Still, the good news is the rally is being fueled by far more than Intel [INTC 18.009 1.179 (+7.01%) ]. True, there is genuine momentum buying in semiconductors and semiconductor capital equipment stocks today, with big volume in ETFs around technology.

But the S&P 500 is up 6 percent this week, one of its best 3-day runs since the March low. Here are the other sectors that are moving:

1) Financials continue the rally that began on Monday. Multiple upgrades of Goldman Sachs in the wake of its earnings report, but other financials have also rallied strongly in the last 3 days:

Financials This Week

* Citigroup up 23%
* American Express up 18%
* Bank of America up 14%
* JPMorgan Chase up 13%
* Wells Fargo up 11%
* Goldman Sachs up 10%

2) Credit card companies are trading higher as they are reporting Master Trust Data for June. The data, for the most part, is a pleasant surprise. American Express just reported that its annualized charge-offs for its credit cards (debts the company believes it will never collect) actually DROPPED to 10.2 percent from 10.4 percent in May; the dollar value of delinquent accounts also dropped. Earlier, Capital One reported that its charge-offs rose a bit to to 9.73 percent in June, from 9.41 percent in May, but delinquencies were lower.

Amex up 12 percent, Capital One up 12 percent, Discover up 7 percent.

3) The weaker dollar, and the Shanghai Index at a 52-week high are both pushing a rally in commodity stocks.

Big commodity names like Alcoa, Freeport McMoran and U.S. Steel all trading up 5 to 8 percent. The Brazil ETF (EWZ) is up 6 percent, with big commodity names there up on heavy volume: Vale up 10 percent, Petrobras up 6 percent.

Global industrials are also up for a similar reason. General Electric, our parent company, is up almost another 5 percent today (up 13 percent this week!). They will report second quarter earnings on Friday; Goldman made positive comments on Monday.

4) Transports are also beneficiaries of the commodity rally. Railroads continue their rally after CSX's strong earnings report; the S&P 500 Railroads Index is up 11 percent this week.

Separately, airlines are up nearly 6 percent after AMR beats estimates.

The one laggard: truckers. JB Hunt gave a sour earnings outlook and is down 10 percent; YRC Worldwide down almost 6 percent, Conway down 2 percent

5) Media stocks are strong as Gannett reported earnings better than expected. No one is deluded here: the beat was on cost cutting; ad revenues were down 32 percent, but the company did see "some bright spots" in ad trends for the third quarter.

Gannett (up 28 percent) and McClatchy (up 28 percent), New York Times (up 8 percent) are all up on heavy volume.

theres money to be made. know your shit and get er done. bitchers and whiners will be left out in the cold.

and remember... when it comes to the market, fools gold is only fools gold to those who get stuck with it.

playing wall street "hot potato" can get you burnt.

tony hipchest
07-15-2009, 10:18 PM
What happened to that obaaama promise of closing the loopholes? Just another lie.


bu...bu....bu....I promise

patience grasshoppa...

http://www.cnbc.com/id/31927126

The Obama administration has sent legislation to Congress that would bring hedge funds and other private pools of capital under government supervision.

The proposal calls for the Securities and Exchange Commission to oversee hedge, private equity and venture capital funds. By registering with the SEC, their books would be open to federal inspection and they would be subject to disclosure requirements to investors and creditors.

During the financial crisis, private funds had to come up with money when their capital was put at risk, contributing "to the strain on financial markets," the Treasury Department said Wednesday in a statement.

The new proposal, part of the administration's sweeping plan to overhaul financial regulation, "would help protect investors from fraud and abuse, provide increased transparency, and provide the information necessary to assess whether risks (of the funds) ... pose a threat to our overall financial stability," the Treasury said.

A bill proposed by Sen. Jack Reed, D-R.I., chairman of a key Senate Banking subcommittee, similarly would require advisers of such funds to register with the SEC if they have at least $30 million in assets under management.

"The financial crisis is a stark reminder" of the need for greater transparency in the world of private investment funds, Reed said at a subcommittee hearing.

The SEC "supports this approach," Andrew Donohue, director of the agency's investment management division, said at the hearing. The legislation would allow private investment funds, which play an important role in the capital markets, "to retain the current flexibility in their investment strategies," he added.


Officials of the groups representing hedge funds and private equity funds expressed support for requiring registration with the SEC.

Venture capital officials, however, warned against a "one-size-fits-all" approach.

"We agree that those entities and industries which could cause financial system failure should be better monitored so that the events of 2008 are never repeated," said Trevor Loy, the founder and general partner of Flywheel Ventures based in Santa Fe, N.M. "However, venture capital is not one of those industries."

Venture capital firms invest in startup companies that are run by entrepreneurs.

Throwing regulatory reins around hedge funds — the vast pools of capital that largely escape government supervision and draw hundreds of millions of dollars from pension funds, charities, university endowments and wealthy individuals — is a central part of efforts to revamp the system of financial oversight spurred by the global economic crisis.

Private equity firms buy, turn around and resell troubled companies a few years later. The industry and its supporters say it plays a unique role in the economy by spurring investment and restructuring.

Fire Haley
07-15-2009, 10:28 PM
Change you can believe in.

Things continued to worsen in the month of May for many states. An additional 5 States (TN, IN, KY, FL & IL) and Washington DC saw their unemployment rates jump to over 10% in May 2009.

Now 13 states have unemployment rates breaching double digits with Michigan, Oregon, South Carolina, Rhode Island and California rounding out the top five.



Detroit unemployment tops 24%

http://3.bp.blogspot.com/__V1GJlBadyE/SlP71sWPcKI/AAAAAAAAAzk/rcS-EkJ0Uqs/s1600/2009-05-Detroit%2BUnemployment%2BRate%2BChart.bmp

tony hipchest
07-15-2009, 10:51 PM
lol. deflection.

the lions detroit lions should relocate to los angeles...

oh wait, california dont know how to run a business either.

all the whiners should secede to canada or mexico. maybe we are better off w/o the losers.

MACH1
07-15-2009, 11:25 PM
Canada is a bad example. Canadian dollar > US dollar

Should of held on to all that worthless Canadian change, its worth something now.

tony hipchest
07-15-2009, 11:40 PM
Canada is a bad example. Canadian dollar > US dollar

Should of held on to all that worthless Canadian change, its worth something now.atleast they will all have socialist medical coverage up there.

as for all the auto industry jobs being lost, it looks like the car makers are gonna have to raise prices to buy robots to sit around in the break room all day, drinking coffee, playing cards, and reading magazines.

robots cant join unions, right?

Preacher
07-15-2009, 11:59 PM
:rofl:

Tony is STILL trying to defend this?

tony hipchest
07-16-2009, 12:17 AM
:rofl:

Tony is STILL trying to defend this?:coffee:

yet another right winger who is all of a sudden against a company turning a profit and paying back bail out money.

oh how the tides quickly turn.

go figure. :tap:

i dont have to defend factual earnings reports.

:willy:

GBMelBlount
07-16-2009, 07:39 AM
tony hipchest

nothing too earth shattering. typical profits from getting in at the markets bottom, but its nice to see the gubment getting some of its money back, plus any good news is good news at this point.

I can understand your feelings that this is "government money", Tony, most liberals and socialists would view it that way.

The reality is that this was tax payer money (yours and mine) that the government confiscated and redistributed because they felt they could spend OUR money better than we could. :tap:

revefsreleets
07-16-2009, 08:59 AM
It worked for GS, right?

Can we give GW Bush some credit then? Let's here it for the EESA! Three cheers for George Bush! Hip hip hooray!

No?

Well, why not?

The bottom line is, TARP, a Bush era aid package, worked. Not much else has...and how's that POS stimulus bill doing, other than ramming a two trillion dollar deficit down our throats?

X-Terminator
07-16-2009, 10:07 AM
Still failing to see what's so wrong about GS paying back the bailout money that we didn't support...

tony hipchest
07-16-2009, 09:48 PM
me too.

misery loves company, i guess.

Fire Haley
07-19-2009, 01:23 PM
Now the rest of the story...

Goldman-Sachs Executive Named as Obama Adviser

President Obama said Friday he would nominate Robert Hormats, a vice chairman of Goldman Sachs International, to a top economic position at the State Department.

http://www.nytimes.com/2009/07/18/business/18bizbriefs-GOLDMANEXECU_BRF.html?_r=1&scp=4&sq=obama&st=cse

-------------------------

game, set, match

bought and paid for




It's early June in Washington, D.C. Barack Obama, a popular young politician whose leading private campaign donor was an investment bank called Goldman Sachs — its employees paid some $981,000 to his campaign — sits in the White House. Having seamlessly navigated the political minefield of the bailout era, Goldman is once again back to its old business, scouting out loopholes in a new government-created market with the aid of a new set of alumni occupying key government jobs.

http://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine/7

revefsreleets
07-19-2009, 02:07 PM
You don't outspend your opponent 8-1 in key battleground states by getting 6th graders allowances.

Fire Haley
07-19-2009, 02:09 PM
So Bush had Enron and now Obama has Goldman-Sachs.

Old boss same as the new boss.

revefsreleets
07-20-2009, 07:57 AM
Bush only took public campaign money. Obama only lied about taking it....then went off and took private funds and tripled McCain's war chest.