Jim Clark on Goldman Sachs
futureofcapitalism.com

The March issue of Bloomberg Markets magazine carries a cover story on Goldman Sachs's investment management division, which the magazine says went through eight different heads in eight years. Netscape founder Jim Clark took his money elsewhere, the article reports:

He had met with Paulson & Co. founder John Paulson in August, 2006 and been impressed by the hedge fund manager's plans to bet against the subprime-mortgage market. His Goldman brokers talked him out of investing with Paulson, describing him as a bit player, Clark says.

Paulson generated a 590 percent return in his flagship credit fund in 2007.

"When it came out that Paulson had the biggest payday in history, I got angry," Clark says. The fact that Goldman Sachs had such a close relationship with Paulson incensed Clark further.

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Paulson's Cronyism
futureofcapitalism.com

George W. Bush's Treasury Secretary, Henry Paulson, gave a select group of money managers at a July 21, 2008 meeting — Eric Mindich, Stephen Mandel, Dinakar Singh, Frank Brosens, James Chanos, Steven Rattner, Bennett Goodman, and Daniel Och — a different view of his plans for Fannie Mae and Freddie Mac than he was giving the public, Bloomberg Markets magazine reports. Bloomberg Markets at times describes the money managers as getting advance word of a Fannie "rescue," but a more accurate description, at least for Fannie's shareholders (not bondholders), was a seizure, a term the article uses once.

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Paulson's Cronyism
futureofcapitalism.com

George W. Bush's Treasury Secretary, Henry Paulson, gave a select group of money managers at a July 21, 2008 meeting — Eric Mindich, Stephen Mandel, Dinakar Singh, Frank Brosens, James Chanos, Steven Rattner, Bennett Goodman, and Daniel Och — a different view of his plans for Fannie Mae and Freddie Mac than he was giving the public, Bloomberg Markets magazine reports. Bloomberg Markets at times describes the money managers as getting advance word of a Fannie "rescue," but a more accurate description, at least for Fannie's shareholders (not bondholders), was a seizure, a term the article uses once.

Read More...

Jim Clark on Goldman Sachs
futureofcapitalism.com

The March issue of Bloomberg Markets magazine carries a cover story on Goldman Sachs's investment management division, which the magazine says went through eight different heads in eight years. Netscape founder Jim Clark took his money elsewhere, the article reports:

He had met with Paulson & Co. founder John Paulson in August, 2006 and been impressed by the hedge fund manager's plans to bet against the subprime-mortgage market. His Goldman brokers talked him out of investing with Paulson, describing him as a bit player, Clark says.

Paulson generated a 590 percent return in his flagship credit fund in 2007.

"When it came out that Paulson had the biggest payday in history, I got angry," Clark says. The fact that Goldman Sachs had such a close relationship with Paulson incensed Clark further.

Read More...