Л. Бланкфейн, "Developments in Global Capital Markets", L. Blankfein

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Uploaded by on Jun 30, 2010

8.10.2009 Открытые семинары:
Ллойд Бланкфейн (Генеральный директор, Goldman Sachs): "Recent Developments in Global Capital Markets"
Public Seminars
Lloyd Blankfein (CEO, )
"Recent Developments in Global Capital Markets"

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  • The biggest problem with the notional derivatives is that there's no transparency. Without stockholders knowing how leveraged companies are in these off-the-books bets there's less confidence in the underlying value of a publicly-traded company.

  • GS received $12.9 billion from the AIG bailout. If AIG were not bailed out, it was hedged only $3 billion. Therefore, the bailout gave GS $10 billion it otherwise would have lost. Would GS have been able to absorb that? Source: USA Today 7-26-10.

  • The unregulated OTC derivatives market has accumulated over 100 trillion dollars since this talk. The 100-year storm just might be coming when this bubble deflates. These derivatives are held by the likes of Gold man as well as B or A, Cit, and JP Morg., and B of A has already tried to get these bets under FDIC protection. Talk about a 100-year blow-up. And btw, many firms accumulated sub-prime risk due to "market-makers" like GS who bet against them.

  • They became a bank holding company not for some arbitrary "status" but to qualify for bailouts. Their business model is nothing special save for their cozy relationship with government that gave them money to survive the financial crisis. Their only business savvy is propensity for corruption. Being well-connected allows them to keep profit during booms and get bailed out during contractions. There is nothing worse for a democracy than criminals like this. I hope he'll get to this to a judge.

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