Goldman Sachs - one of the world's largest commercial banks (until September 2008 - Investment Bank) is a financial conglomerate, in the circle of financiers known as «The Firm». On September 20, 2013 is included in the Dow Jones Industrial Average.
Type - Public company
Year of construction - 1869
Location - 200 West Street, New York, United States
Assets - $ 911.5 billion (2013)
Number of employees - 32 900 (2013)
The headquarters of Goldman Sachs, 200 West Street, in Manhattan
The company was founded in 1869 by Marcus Goldman. In 1896, Goldman, an experienced financier, went to the US to enter the New York stock market. In the same period, to Goldman joins his son Samuel Sachs. So the company received its present name.
In the early XX century, Goldman Sachs was the only major player in the market to form IPO. In 1906, the Bank manages the largest at the time of the initial public Sears Roebuck. Goldman Sachs also became the first company to heavily hired graduates from the best business schools with a degree in business administration.
Goldman Sachs was involved in the IPO companies such as Microsoft, Yahoo, Ford, GE. In 2006, the Bank also participated in the initial public offering of Rosneft (although it is not a bank-underwriter). Goldman Sachs owns a 30% stake in Burger King.
One of the most important events in the history of the bank was its own IPO, held in 1999. The adoption of a decision to enter the stock market has been extremely difficult for the bank's management. In the end it was decided to bring to the market only a small part of the bank's shares. Approximately 48% of the company belongs to partnership associations, 22% are from the company's employees (including former employees), 18% are held by long-term investors Sumitomo Bank Ltd. and Hawaii's Kamehameha Activities Assn., respectively, about 12% of its shares were withdrawn directly to the market.
In the IV quarter of fiscal 2008 Goldman Sachs for the first time since its IPO in 1999, suffered a loss of $ 2.1 billion.
The company's business is divided into three key divisions: investment banking, stock trading, and asset management and securities.
The investment activities of the bank, in turn, is divided into 2 more units, including financial advice (mergers and acquisitions, investiture, restructuring, separation from the parent companies) and underwriting (public and private placements of equity instruments, securities, equity-linked, ie securities convertible into shares and securities giving the right to purchase shares, such as options and warrants for shares, debt instruments).
Goldman Sachs - one of the leading investment banking. On the M & A market has historically earned fame bank advising their clients on how to avoid hostile takeovers. This business segment generates about 15% of the turnover Goldman Sachs.
Exchange trade and investment is the largest of the three business segments of the Bank, as well as the main source of profits. This segment is divided into three divisions: fixed-income investments, as well as currency and commodity activities (trade credit products, foreign exchange and commodity transactions), securities trading and investment activity itself.
Asset Management - a fast-growing business segment Goldman Sachs. It is divided into two key segments, including direct management of assets and the so-called alternative investments: hedge funds (Fund for the management of securities with a high degree of risk), trade in private equity (private equity), real estate funds. This area of activity attracting private investors and various large organizations. This activity accumulates 19% of the company's profits.
Goldman Sachs in Russia
Representative office in Moscow operates since 1998. In 2008 was opened and began to act in accordance with the banking license of the Central Bank of the Russian Federation, Goldman Sachs Bank in the form of a limited liability company with registered capital of 1 billion. 450 million rubles. The license provides for banking operations in rubles and foreign currency (without the right to attract deposits from individuals).
In the Russian Federation, Goldman Sachs is also represented by a limited liability company "Goldman Sachs", which is a professional participant of the securities market, carrying out activities as a broker and dealer.
This rise of Goldman Sachs began in September 2008, when Henry Paulson, the then finance minister and a former director of Goldman Sachs, has taken a number of crucial decisions. He helped redeem the pseudo-private companies to lend money - Fannie Mae and Freddie Mac, as well as allowed to collapse last real rival bank Goldman «Lehman Brothers».
The very next day Paulson runs the program for 85 billion buyback company AIG, which quickly turns around and pays the $ 13 billion that it needs to Goldman. Thanks to these rescue operations, the bank fully paid for its unsecured bad bet.
Immediately after the purchase of AIG Paulson announced the federal program of redemption of the financial industry, the plan for 700 billion, known as (approximately) "assistance program for flow rates with difficulties» (TARP). Manage these funds was appointed 35-year-old Goldman named Neel Kashkari.
To be eligible to take advantage of the redemption money, Goldman announced that it transforms itself from an investment bank (ie the bank's investments) in "bankosoderzhaschuyu" company. This course allows you to have access not only to the 10 billion money TARP, but also a number of other, less visible ways, fuck taxpayers' money - primarily to "utsenochnomu window" of the Federal Reserve. By late March, the Fed loans FOR fishers 8.7 trillion in a series of new programs foreclosure-help - and thanks to a little-known law that allows the system to block most of the DF audit by the US Congress, the amount and the recipients will remain almost completely classified.
Translation company status bank-holding («holder" other banking companies) has brought other benefits: Goldman is chief of the governors of New York Office of the Federal Reserve, whose chairman at the time of the status change was Stephen Friedman, a former co-chairman of Goldman Sachs. Friedman technically violated the policy of the Federal Reserve, while remaining a member of the Directorate Goldman, at the time, when he formally, as it was responsible for the bank. To correct the problem, he asked for (and got) a document from the government to release him from responsibility for a conflict of interest. Friedman also had to get rid of the shares of Goldman after he became the holding company of banks, but went out and bought another 52,000 shares his hometown bank, making it 3 million richer. Friedman resigned in May, and in its place today oversees Goldman - the president of the New York Fed - William Dudley - just a former Goldman.
In April 2010, the Commission on the Securities and Exchange Commission (SEC) filed a civil lawsuit against the bank, accusing him of securities fraud. According to the SEC, in 2004-2007, during the boom in the credit market Goldman Sachs offered customers a product Abacus - synthetic bonds, which were secured by mortgage loans and commercial real estate sector. US market regulator Securities claims that this product was developed by hedge fund manager John Paulson, who also played in the fall of the real estate market, which entailed significant risks to the bank's clients. Proceedings of the suit led to panic selling of shares Goldman Sachs: for April 16, 2010 exchange rate of its shares fell by 12.79%. Later it became known that such schemes do not disdain, and other banks, in particular, Deutsche Bank. British Prime Minister Gordon Brown said that "shocked the moral bankruptcy» Goldman Sachs and demanded that the British regulator to investigate such activities. As a result the bank to settle the case of the deception of customers, agreed to pay $ 550 million.
In March 2012, a wide repercussions article "Why I'm leaving Goldman Sachs» (Why I Am Leaving Goldman Sachs) a former bank employee, who worked middle managers, Greg Smith, in The New York Times. In his article, Smith accused the management of Goldman Sachs in disregard of the interests of customers, the pursuit of profit at any cost and full retreat from the norms of corporate culture. According to him, the bank has become commonplace belief customers to buy tools from which the bank is willing to get rid of, forced to work with tools, bringing the highest profit behalf of the Bank. Customers, according to Smith, the bank called "The Muppets" (from the name of the characters Muppet Show).