Mercury Rising 鳯女

Politics, life, and other things that matter

Is Goldman Sachs the next Enron?

Posted by Charles II on April 21, 2009

I wouldn’t have had any idea. However, Reggie Middleton says that GS uses up to $58B of off-balance sheet financing. I know about this thanks to a blog by Mike Morgan whose URL is GoldmanSachs666. Off-balance sheet financing is fine when it’s less than 1% of an entity’s balance sheet. $58B is 6.6% of Goldman’s assets. That is a dangerous level, larger than what brought Lehman down, according to Middleton. If it’s false, this is the kind of thing that Goldman should easily be able to rebut, and they certainly don’t lack a PR budget or access to financial media to refute Middleton.

GS was happy to take taxpayer money when the credit markets froze. Now it is trying to SLAPP Morgan into silence for publishing or reprinting opinions adverse to the firm. I’ve therefore added a link to the “Good Causes” section in solidarity with Morgan. Go get ’em, Cap.

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