Goldman Clients Get the Shaft... AGAIN
By Briton Ryle | Wednesday, February 20th, 2013
Goldman Sachs CEO Lloyd Blankfein should be hung by his thumbs in a public square...
Because the climate he oversees at Goldman is completely void of common morals and ethics. This bunch of bloodsuckers would sell out their own mother if it meant they could put a couple bucks in their pocket.
I know this may not come as a complete surprise, but the latest example of Goldman's profit-mongering deceit is so blatant, so downright perverse, it's almost comical. Almost.
I'm sure you've heard that Warren Buffett partnered with Brazilian private equity firm 3G Capital to buy out the Heinz (NYSE: HNZ) company for $24 billion. The deal was announced on Valentine's Day.
But as late as February 10, Goldman Sachs was telling its clients they should sell Heinz because weakness in foreign currencies were likely to affect earnings. With the stock trading around $60, Goldman slapped a $53 price target on Heinz shares.
Goldman's clients that acted on the firm's recommendation missed the 20% pop when the Buffett deal was announced.
I suppose Goldman's “sell” recommendation could be dismissed as bad timing, and the thesis that weakness in foreign currency would hurt earnings was actually correct...
But rumor has it that it was Goldman's own traders that were buying the Heinz shares their clients were selling.
What you don't understand is they have a fiduciary duty to their shareholders. You can't blame a company for maximizing shareholder value when the laws say that is what they must do.
With that said, I do not agree with US companies being able to use these types of loopholes. Instead of blaming the company, I blame the legislators who take the millions of dollars from their lobbyists and created these loopholes. We need to reform the tax laws and not blame the corporations who legally benefit from following them.