Here come the Feds

April 30, 2010

ANT has been calling for and expecting see increase negativity around GS  for a while now and just as we suspected, things are spiraling further downhill for the storied firm.

Today AP is reporting that the Justice Department has opened a criminal investigation into the firms mortgage related dealing.

Read the whole story here.

ANT remains of the opinion that now is a great opportunity to short GS.  There is a big pipeline of news that will hit over the next few months and all of it is slanted to the negative side of ledger.  The financial reform bill seems to be picking up steam and looks like it might implement serious derivatives reform (which will hit GS in its biggest profit center) and the Volcker rule (which if implemented in its “strong” form might require the firm to split up or go private).

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UPDATE:

ANT has been working out in London (UK) for the last little while and the above post was written in the morning.  When the markets opened in NY later in the day GS opened sharply down.

GS Media Pile On

April 24, 2010

Today its the Yahoo homepage (one of the most widely read ‘things’ in the world).  This interesting thing to note is that the headline is almost tabloidic and isn’t substaniated by the quotes found in the article.  Thats the point of what we here at ANT have been pushing, once the initial shot was fired it was clear that a coordinated (in the loosest most decentralized sense of the word) global ‘pile on’ was about to occur.  When the history of the financial crisis is written there is no doubt here at ANT that GS will be its primary villain, and thats why its time to go short.

Courtesy of Associate Press:

E-mails show Goldman boasting as meltdown unfolds

In e-mails, Goldman Sachs executives boast of profit-taking as housing market collapses

….”Of course we didn’t dodge the mortgage mess,” CEO Lloyd Blankfein wrote in an e-mail dated Nov. 18, 2007, according to the documents released Saturday morning. “We lost money, then made more than we lost because of shorts.”

[IS THAT BOASTING, MORE LIKE A MEASURED STATEMENT OF FACT]

…Goldman Chief Financial Officer David Viniar says that in one day the firm made more than $50 million on bets that the housing market would collapse, according to a statement from Levin’s office.

Tells you what might be happening to people who don’t have the big short,” Viniar writes in the message dated July 25, 2007. Viniar is also scheduled to testify on Tuesday.

[AGAIN, BOASTING? INTERESTING USE OF A PHRASE THAT MIHCAEL LEWIS WOULD LATER PICK UP ON AND MAKE FAMOUS.]

GS Backlash Grows

April 22, 2010

**UPDATE to GS is the new TOXIC Asset**

  • German state bank has severed all ties to Goldman and French gov’t considering its own investigation – http://bit.ly/bgJw2Y
  • Seems GS GEO LB agrees with ANT’s view on this one (taken from BusinessInsider.com, a must read for anyone interested in finance or technology):In the conversations with private equity executives and others, Mr Blankfein left clients with the impression that he was eager to fight the charges in court. The SEC has requested a jury trial. “He was very aggressive,” said one person called by Mr Blankfein on Wednesday. “He feels that the government is out to kill them, that they are under attack and the whole thing is totally political.” Mr Blankfein said the SEC action “hurts America”, this person said.Read more: http://www.businessinsider.com/henry-blodget-goldmans-blankfein-sec-fraud-suit-is-just-a-political-hit-job-2010-4#ixzz0lpAsrDgP