Why I Am Leaving Goldman Sachs.
New York Time Op-Ed. March 14th 2012:
TODAY is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it. [more inside]
posted by Skygazer
on Mar 14, 2012 -
is basically the practice of selling borrowed shares, with the intention of purchasing them back later at a lower price. It amounts to a placing a bet on the share value dropping, is a favoured move of hedge funds
, and has been recently blamed
for much of the current economic mayhem.
However, when last Sunday Porsche
tersely announced that, in addition to its 44% of Volkswagen
's shares, it had secured 31% through cash-settled call options
, the invisible hand of the market gave those short-sellers an atomic wedgie
Since the German state of Lower Saxony
holds just over 20% of VW, Porsche's disclosure meant that, in fact, there were only 5% of VW's shares left on the market, whereas traders were shorting for about 13% of those shares. This set off the "Mother of All Short Squeezes
". [more inside]
posted by Skeptic
on Oct 29, 2008 -
There are still some smart people
left on Wall St. Hedge fund manager, John Paulson, made a cool $15B for his fund as the housing market imploded. His cut? $3-4B. Not too shabby for a year's worth of work. [more inside]
posted by blahblah
on Sep 26, 2008 -
EarthShell, a small Maryland company that makes environment-friendly packaging (among
others) may wink out of existence
thanks to PIPEs
, or private investments in public equities. Who likes PIPEs? Hedge Funds
, mostly. Companies that take the pipe
, as it were, may be sealing their doom. 10 percent of PIPE deals done this year are 'death spirals'
, where the company's stock price plummets from short selling by the financiers who structured the deal in the first place. And of course it's legal if you don't
get caught shorting the stock naked and covering with the shares from the PIPE.
(BTW, http://www.earthshell.com appears to be on the margins now or I'd have linked it).
posted by nj_subgenius
on Dec 27, 2006 -
Carl Icahn's Time Warner efforts
find a powerful ally in "white-shoe"
investment bank Lazard
. Wall Street M&A advisors have been hesitant to support efforts by Icahn and his hedge fund brethren in their share-holder activist efforts for fear of alienating fee-paying corporate clients (investment banking, legal and registration fees on the Time Warner/AOL deal
were approximately $300 million). By hiring Lazard
, which is led by banking legend Bruce Wasserstein (1
), Icahn is surely raising the intensity of his campaign against Time Warner management. Icahn has been successful in previous shareholder activist campaigns, most notably against Blockbuster (1
), and talks a pretty mean game
. Wall Street will be watching this closely - hedge fund activism is becoming a very real fear for company management/directors: Circuit City/Highfields Capital
, Bally's Fitness/Pardus Capital & Liberation Investment Group
, Axciom/ValueAct Capital
, MSC Software/ValueAct Capital (reg. required)
, Beazer Homes/Tontine Capital (second story on page)
posted by mullacc
on Nov 30, 2005 -