Naresh Rapelli Vijesh Mehta Anil Jain Neelam Singh Sudhakar Chikkala

Presentation by Group A-7

GoldmanSachs

GoldmanSachs

• Founded in 1869 by Marcus Goldman and Samuel Sachs

• Headquarter in Manhattan, New york

• Services provided- asset management, commercial banking, investment banking, mutual funds, prime brokerage.

• Offices worldwide – America, Europe, Asia Pacific, middle East.

• Primary dealer in US Treasury Security market.

• Currently headed by Lloyd Blankfein, CEO.

Company Background

• NINJA Loans

• CDO

• CDS

• Higher Interest Rate because of Higher risk

• U.S. subprime mortgage crisis - a rise in subprime mortgage delinquencies and foreclosures

Sub Prime Crisis – A Human Story

• Paulson developed a strategy to sell short the RMBS referenced by ABACUS. It served as counterparty to ACA’s long position.

• Paulson partook in the structuring of ABACUS selecting RMBS reference assets likely to experience full or partial default.

• Paulson, a Goldman client, was synthetically short-selling ABACUS. Its interest was materially adverse to that of ACA.

• Goldman should have made the requisite disclosures (including any conflict of interest issues) to the investing public.

Short Selling ABACUS

Who all were holding the bag?

Held collectively by:

• Depositors• Investors• SPV• Banks• Government• Banks worldwide – Domino Effect

The Players

• Gold Man sachs & company

• Paulson and Company

• ACA Management

• IKB Deutsche Industriebank AG (IKB)

• The Security and Exchange commission

Goldmen of Goldman

Post effects

The Great Depression

• Starting a normal business as currently known as nbfc's

• Diversifying the existing business by business known as investment trust which is like  mutual fund this the time were Goldman's started gaining trust of people

• Incorporating new firm, raising money for these firms, creating artificial demand for the companies share  & making money for self & again incorporating new firm & the process continues

• As the process continues large chunk of money goes out from the systems to few people hands like Goldman sachs .

Global Warming

• This is the latest in the making yet again by Goldman Sachs, after the great FOOD Bubble of 1991.

• This market is officially worth $646 Billion whereas the other market gurus are estimating 2-3 times more of this value.

• Goldman has also endorsed mandatory government limits on carbon emissions and would probably reap huge profits from the cap-and-trade emissions control policy that both Barack Obama and John McCain have endorsed.

• With its eye on potentially lucrative carbon trading, in 2006 Goldman paid $23 million to purchase a 10% interest in the Chicago Climate Exchange, the only U.S. exchange that conducts trading in carbon offsets

• Goldman started pushing hard for cap-and-trade long ago,spent $3.5 million on bubble

• Goldman bought a subsidiary called Horizon Wind Energy and also owns minority stake in Blue Source LLC an Utah based firm that sells carbon credits of the type that will be in great demand if the bill passes.

Tech Stock Bubble

• Goldman Sachs was already the King of the Underwriter to many companies on the Wall Street in the 1980 s, even after the Great Depression era.

• Their analysts would misguide investors by saying a $100 for a Bullshit.com stock.

• Goldman knew full well that many of the public offerings they were advertizing would never Click

• Goldman quickly became the IPO king of the Internet era with the practice called laddering

Thank you