Skip to main content

Life after Blankfein? Goldman scenarios

Wall Street Journal examines the current "what-if" scenarios surrounding Goldman Sachs and its chairman/CEO Lloyd Blankfein.

Here's an excerpt:

"Some executives and powerful alumni of Goldman Sachs Group Inc. are talking about whether Chief Executive
Lloyd C. Blankfein can survive the legal and public-relations storm swirling around the company, according to people familiar with the situation.

The conversations being held among some partners, managing directors and other current and former executives are informal, and there appear to be no plans for a management shake-up.

The various hypothetical scenarios include whether Mr. Blankfein should resign, whether there should be a broader house-cleaning of top Goldman management or whether to separate the chairman and CEO posts now held by Mr. Blankfein...
".


As noted in yesterday's post, Goldman & chief Blankfein are now in damage control mode, hoping to part the dark clouds that have formed as a result of the recent SEC complaint and more recent talk of a pending criminal investigation.


As a result, chatter about Blankfein's possible departure from Goldman has been building this week. While one large shareholder quoted in the Journal piece stated his fervent hope that the firm's problems would go away "in the next month or so", this outcome seems highly unlikely.


If anything, the talk about Blankfein's departure as CEO will probably grow louder over the coming weeks (for a variety of reasons). Here's my quick take from Twitter earlier:

Starting to think the play of the week was/is to go long Blankfein departure futures on InTrade (no pos.) http://bit.ly/9IKjBh $GSWed May 05 17:40:38 via web


So, while we consider possible outcomes that seemed like distant long-shots just two weeks ago (nice call, Keith), it's important to remember (as Fitch reminds us in their latest ratings update on Goldman Sachs) that minding your reputational risk is key for companies, and "critically important" for financial firms dependent on capital markets.

Popular posts from this blog

Jesse Livermore: How to Trade in Stocks (1940 Ed. E-book)

If you've been around markets for any length of time, you've probably heard of 20th century supertrader, Jesse Livermore . Today we're highlighting his rare 1940 work, How to Trade in Stocks (ebook, pdf). But first, a brief overview of Livermore's life and trading career (bio from Jesse Livermore's Wikipedia entry). "During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly. Ironically, Livermore sometimes did not follow his rules strictly. He claimed that lack of adherence to his own rules was the main reason for his losses after making his 1907 and

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL!  Please bookmark our new web address at Financetrendsletter.com Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner .   Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead! As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter . You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter).  Stay up to date with our real-time insights and updates on Twitter .

Moneyball: How the Red Sox Win Championships

Welcome, readers . T o get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter .   The Boston Red Sox won their fourth World Series title of t he 21st century this we ek. Having won their first Se ries in 86 years back in 200 4, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it? Quick background: in late 2002, team own er and hedge fund manager, John W. Henry (with his partners ) bought the Boston Red Sox and its historic Fenway Park for a reported sum of $ 695 million. Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship. This brings us to one of my fav orite scenes from the 2011 film , Moneyball , in which John W. Henry (played by Ar liss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pi