Goldman Sachs doing god's work

JulieW · Jul 16, 2012

http://www.theage.com.au/technology...lost-in-banker-black-hole-20120716-2253o.html

Fascinating read

The business deal from hell began to crumble even before the Champagne corks were popped.

The deal, the $US580 million ($567.40m) sale of a highflying technology company, Dragon Systems, had just been approved by its board and congratulations were being exchanged. But even then, at that moment of celebration, there was a sense that something was amiss.

The Bakers are demanding damages ... that could top $US1 billion ... nearly twice what Goldman paid to settle claims that it misled investors about subprime mortgage investments before the financial crisis of 2008.

The chief executive of Dragon had received a congratulatory bottle from the investment bankers representing the acquiring company, a Belgian competitor called Lernout & Hauspie. But he hadn't heard from Dragon's own bankers at Goldman Sachs.

"I still have not received anything from Goldman," the executive wrote in an email to the other bank. "Do they know something I should know?"

More than a decade later, that question is still reverberating in a brutal legal battle between Goldman and the founders of Dragon Systems along with a host of other questions that go to the heart of how financial giants like Goldman operate and what exactly they owe their clients.
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Worth reading the whole game sheet. I note the unreality:

Goldman assigned four bankers, two in their 20s and one in his early 30s. That wasn't unusual. Although Dragon Systems was worth everything to the Bakers, the company with $US70 million in revenue and 400 employees was small beer on Wall Street. Dragon agreed to pay Goldman a flat fee of $US5 million, less than some Goldman bankers were pulling down.
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Goldman Sachs doing god's work

JulieW Well-Known Member Silver Stacker

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Goldman Sachs doing god's work

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