Article: Goldman Sold $10.5 Billion of Stocks in Block-Trade Spree

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Goldman Sold $10.5 Billion of Stocks in Block-Trade Spree

Bei Hu, Gillian Tan and Drew Singer,  27 March 2021

(Bloomberg) — Goldman Sachs Group Inc. liquidated $10.5 billion worth of stocks in block trades on Friday, part of an extraordinary spree of selling that erased $35 billion from the values of bellwether stocks ranging from Chinese technology giants to U.S. media conglomerates.

The Wall Street bank sold $6.6 billion worth of shares of Baidu Inc., Tencent Music Entertainment Group and Vipshop Holdings Ltd. before the market opened in the U.S, according to an email to clients seen by Bloomberg News.

That move was followed by the sale of $3.9 billion of shares in ViacomCBS Inc., Discovery Inc., Farfetch Ltd., iQiyi Inc. and GSX Techedu Inc., the email said.

More of the unregistered stock offerings were said to be managed by Morgan Stanley, according to people familiar with the matter, on behalf of one or more undisclosed shareholders. Some of the trades exceeded $1 billion in individual companies, calculations based on Bloomberg data show. Continue reading “Article: Goldman Sold $10.5 Billion of Stocks in Block-Trade Spree”

Article: What’s The Endgame For GameStop?

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What’s The Endgame For GameStop?

Taylor Tepper,  27 January 2021

There’s something very weird happening in shares of GameStop (GME).

A market frenzy has pushed the shares of the Grapevine, Texas-based video game retailer up more than 3,000% in just a few months—far, far outsripping the market as a whole. A once-dormant brick-and-mortar retailer with sagging sales, GameStop was worth $300 million in August 2019. Today it has a market cap of almost $20 billion.

Nobody knows what it’ll be worth tomorrow.

GameStop has not invented an addictive new gaming platform. GameStop has not rolled out an awe-inspiring online gaming delivery service. GameStop is a store at the mall. That doesn’t bode well for revenue, given that state governments have imposed rolling lockdowns and stay-at-home orders to limit the spread of Covid-19. And yet here we are. Continue reading “Article: What’s The Endgame For GameStop?”

Article: Case Sheds Light on Goldman’s Role as Lender in Short Sales

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Case Sheds Light on Goldman’s Role as Lender in Short Sales

Gretchen Morgenson

The New York Times, 29 January 2016

It would be easy to overlook the case against Goldman Sachs filed by the Securities and Exchange Commission on Jan. 14. It involved a complex piece of Wall Street plumbing, led to a minuscule $15 million fine and came on the same day that Goldman agreed to pay up to $5 billion to settle prosecutors’ claims that it sold faulty mortgage securities to investors.

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Article: Anger at Goldman Still Simmers

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Anger at Goldman Still Simmers

Gretchen Morgenson

New York Times cited by RGM Communications via Wayback, 26 March 2012

Just before the financial crisis began in September 2008, a prominent hedge fund appeared well positioned to take advantage of any turmoil in the markets. That fund, Copper River Partners, had made sizable bets months earlier against companies whose stocks it expected to suffer.

Within weeks, however, Copper River, once a successful $1.5 billion hedge fund, was out of business, having unexpectedly absorbed losses on the very bets it thought would be profitable.

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