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Goldman Taps Startup to Explore Quantum Computing - WSJ
By Sara Castellanos
Dec. 10, 2019

Goldman Sachs Group Inc. has teamed up with a quantum-computing startup, QC Ware Corp., for a 3-month trial to explore how the emerging technology could be used to speed up financial calculations and artificial-intelligence-based decision making........harnessing the properties of quantum physics, quantum computers have the potential to sort through a vast number of possibilities in nearly real time and come up with a probable solution. While traditional computers store information as either zeros or ones, quantum computers use quantum bits, or qubits, which represent and store information as both zeros and ones simultaneously........QC Ware uses the cloud to connect businesses with early-stage quantum-computing hardware providers including D-Wave Systems Inc., Rigetti Computing and IBM. The startup also helps enterprises develop quantum algorithms and applications......QC Ware will help Goldman Sachs determine whether quantum computing could be used to speed up a computational algorithm known as Monte Carlo. The algorithm is used to calculate the theoretical value of an option, or a contract that gives individuals the right to buy or sell an underlying asset at a specific price and time.......Quantum-computing technology could also be useful in speeding up AI-based calculations that help determine trading strategies for clients,......“In the universe of industries where there is a potential quantum advantage, you could argue that finance has got the shortest path to impact,”
algorithms  Goldman_Sachs  IBM  Monte_Carlo  quantum_computing  start_ups 
10 weeks ago by jerryking
Labels in finance have become meaningless     | Financial Times
OCTOBER 18, 2019 | Financial TImes | by Tom Braithwaite.

In the hunt for returns, investment banks now offer credit cards and hedge funds sell books

Some of Goldman’s investment bankers fear the company’s diffuse range of activities dilute its core role. Once, Goldman Sachs touted itself as “a leading global investment banking and securities firm” advising on mergers and trading debt and equities, Goldman is now: a venture capitalist investing in the likes of Uber and WeWork; a retail bank offering accounts and short-term loans to ordinary consumers; a credit card issuer in partnership with Apple; and a software developer with a suite of applications. ....The finance industry is now full of companies uncomfortable in their own skins and trying to adopt more fluid identities. Blackstone, notionally a private equity firm, today makes more money from property. BlackRock, famous as one of the world’s biggest owners of public equities, is now getting into private equity buyouts. Elliott Management, an activist hedge fund, has ended up owning a football club, AC Milan, and two bookstore chains, Barnes & Noble and Waterstones. Barriers are breaking down and labels are fraying......It is this yield-starved world that sends financial companies roaming far and wide in a hunt for returns.....the IMF has pointed to renewed risks from pension funds’ headlong rush into alternative assets. The allocation to alternatives such as property and private equity has risen from just over 5 per cent in 2007 to more than 20 per cent today. The IMF warns of Woodford-like runs on a grand scale when investors rush to withdraw assets from such “open-ended funds”, yet another misnomer. “Such runs could force fund managers to engage in fire sales, further depressing asset prices, inflicting losses on other market participants, and, in the extreme case, increasing the risk for the financial system,” the economists warned. Always read the label, but never rely on it.
alternative_investments  Blackstone  BlackRock  Elliott_Management  finance  Goldman_Sachs  layer_mastery  selling_off  special_sauce 
october 2019 by jerryking
Goldman taps Amazon executive as new tech boss
September 12, 2019 | Financial Times | Laura Noonan in New York.

Goldman Sachs has hired a senior executive from Amazon Web Services (AWS) to replace departing technology boss Elisha Wiesel, in a move that could accelerate the bank’s migration to cloud services.

Goldman announced the appointment of Marco Argenti, erstwhile vice-president of technology at cloud-technology provider AWS. He will be co-chief information officer, replacing Mr Wiesel, a Goldman veteran who was last week reported to be in talks to leave the bank.

The Wall Street giant, which likes to describe itself as more of a tech company than a bank, has also hired a senior Verizon executive, Atte Lahtiranta, as its new chief technology officer, replacing John Madsen who is leaving the partnership but will continue as chief architect of technology.....Goldman Sachs was an early convert to cloud computing — where processing capability is accessed online rather than through physical machines — and has used it to strip out costs over the past few years.
Amazon  appointments  AWS  C-suite  CIO  cloud_computing  digital_savvy  digital_strategies  Goldman_Sachs 
september 2019 by jerryking
Goldman Sachs | Careers Blog - 2017 Back-to-School Reading List
============================================
Good Night Stories for Rebel Girls, by Elena Favilli and Francesca Cavallo
With three children under four coupled with a career in investment banking, I find it challenging to find time for reading books. But, I also struggle to find good books to read to my children, especially books for my daughters that aren’t about princesses and living happily ever after. I received “Good Night Stories for Rebel Girls” from a good friend who also has two daughters. Comprising a few hundred short stories depicting strong female leaders from recent history, the book provides great female role models for my daughters that aren’t princesses.
==================================================
The Three-Body Problem, by Liu Cixin
I’ve been a science fiction fan my entire life but had never read any Chinese works until this book. The plot is super-ambitious; since I don’t want to spoil anything I’ll just say it starts off with a wave of scientist suicides in the wake of experimental particle physics results that suggest science is broken.
=====================================================
Network Thinking: Beyond Brockhaus Thinking, by Ulrich Weinberg
An unusual roadshow to the most innovative locations and people around the world. Where network thinking drives actions. The book leads behind the scenes of large corporations that are leaving the analog 20th century “Brockhaus Thinking” mode, but also to small companies that never practiced it. It shows how a network thinking approach can make corporates and individuals extremely successful.
books  booklists  book_reviews  Edith_Cooper  fiction  Goldman_Sachs  nonfiction  science_fiction 
march 2019 by jerryking
Opinion | Robert E. Rubin: Philosophy Prepared Me for a Career in Finance and Government - The New York Times
By Robert E. Rubin

Mr. Rubin was secretary of the Treasury from 1995 to 1999.

April 30, 2018

Raphael Demos. Professor Demos, an authority on Greek philosophy, was Harvard’s Alford Professor of Natural Religion, Moral Philosophy and Civil Policy. But to me, when I took a class with him my sophomore year, he was a genial little man with white hair and an exceptional talent for engaging students from the lecture hall stage, using an overturned wastebasket as his lectern. Professor Demos would use Plato and other great philosophers to demonstrate that proving any proposition to be true in the final and ultimate sense was impossible. His approach to critical thinking planted a seed in me that grew during my years at Harvard and throughout my life. The approach appealed to what was probably my natural but latent tendency toward questioning and skepticism.

I concluded that you can’t prove anything in absolute terms, from which I extrapolated that all significant decisions are about probabilities. Internalizing the core tenet of Professor Demos’s teaching — weighing risk and analyzing odds and trade-offs — was central to everything I did professionally in the decades ahead in finance and government.......Demos crystallized for me the power of critical thinking: asking questions, recognizing that there are no provable certainties and analyzing the probabilities. And that, coupled with my coffeehouse lessons, was the best preparation one could have — not just for a career but also for life.
Robert_Rubin  Colleges_&_Universities  Harvard  philosophers  philosophy  Plato  Wall_Street  Goldman_Sachs  career_paths  advice  life_skills  probabilities  decision_making  critical_thinking  U.S.Treasury_Department  Greek  tradeoffs 
may 2018 by jerryking
A Sidelined Wall Street Legend Bets on Bitcoin
April 16, 2018 Issue | The New Yorker | By Gary Shteyngart.
A Sidelined Wall Street Legend Bets on Bitcoin
Michael Novogratz is searching for redemption in cryptocurrencies.
Wall_Street  Bitcoin  Goldman_Sachs  digital_currencies  currencies  virtual_currencies  metacurrencies  crypto-currencies 
april 2018 by jerryking
Goldman eyes expansion of investment banking
March 23, 2018 | FT | Ben McLannahan.

The contrasting fortunes of the rivals for the top spot suggest that Goldman sees no immediate turnround in trading, and in fixed-income trading in particular, where clients such as hedge funds have been reluctant to put on big trades in listless, directionless markets. Mr Blankfein noted on Friday that the entire industry had been hurting, as overall revenues roughly halved from their peak in 2009. But he said Goldman had “under-invested” in simpler products such as cash bonds, “which led to lower penetration with certain large asset managers and banks.”

The future is dealmaking, more relationships; they can’t just deal with the blue-chips and the next rung down

David Hendler, Viola Risk Advisors
The doubling down in investment banking suggests that Goldman is “going where the margins are,” said David Hendler, founder and principal of Viola Risk Advisors. “The future is dealmaking, more relationships; they can’t just deal with the blue-chips and the next rung down.”
directionless  Goldman_Sachs  investment_banking  growth  Lloyd_Blankfein  relationships  expansions  deal-making  blue-chips 
march 2018 by jerryking
Marty Chavez Muses on Rocky Times and the Road Ahead
NOV. 14, 2017 | - The New York Times | By WILLIAM D. COHAN.

Mr. Chavez is about as far from the stereotypical Wall Street senior executive as you can imagine, and that is one reason his musings about the future direction of Wall Street are listened to carefully.

He grew up in Albuquerque, one of five children, who all went to Harvard. He got a doctorate in medical information sciences from Stanford University. (At that time, he was known by his full name Ramon Martin Chavez.)

In 1990, Mr. Chavez came out, the day after he defended his doctoral dissertation. – “Architectures and Approximation Algorithms for Probabilistic Expert Systems.” He is one of the few openly gay executives on Wall Street. ......In his current role as Goldman's CFO, Marty views his job as a simple one that is hard to get right: “I’m not paid or evaluated on the accuracy of my crystal-ball predictions,” he said. “I’m paid to enumerate every possible outcome and do something about every possible outcome well in advance, when it’s still possible to do something, because once it’s happened it’s too late.”....Unlike many of his peers on Wall Street, Mr. Chavez does not complain about the extent of the regulation that hit the financial industry as a result of Dodd-Frank. Generally speaking, he says, the regulations have helped banks “confront their problems and capitalize and bolster their liquidity,” making them “stronger as a result,” and the financial system safer and more profitable.....Instead of complaining about the extra expense and manpower required to comply with the mountain of new regulations, Mr. Chavez chooses instead to think about it differently. “If you approach the regulations as ‘Oh, we’ve got to comply,’ you’ll get one result,” he said. He prefers thinking about the regulations as, “This makes us and the system and our clients safer and sounder, and yes it’s a lot of work, but what can we learn from this work and how can we use this work in other ways to make a better result for our shareholders and our clients? Everywhere we look we’re finding these opportunities and they’re very much in keeping with the spirit of the times.”

Like any good senior Goldman executive, he does worry. (Lloyd Blankfein, the Goldman chief executive, once told me he spent 98 percent of his time worrying about things with a 2 percent probability.)

His biggest concern at the moment is the risk of “single points of failure” in the vast world of cybersecurity (JCK: SPOF). He worries about any individual “repository of information” that does not have a backup and that can “be hacked.”

He does not even trust Goldman’s own computer system; he treats it as a potential enemy.

.....What also makes Goldman different from its peers is the firm’s love affair with engineers. At the moment, he said, engineers comprise around 30 percent of Goldman’s work force of about 35,000. It’s what drew him to Goldman in the first place — to work on Goldman’s in-house software, “SecDB,” short for “Securities Database,” an internal, proprietary computer system that tracks all the trades that Goldman makes and their prices, and regularly monitors the risk that the firm faces as a result.

He said the system generates some million and a half points of data that were used to calculate, for the first time, the firm’s “liquidity coverage ratio” — now 128 percent — and that were shared with regulators every day. He’s been busy trying to figure out how the newly generated data can be used to help him understand what the firm’s liquidity will be a year from now.

That way, he said, in his principal role as Goldman’s chief financial officer, he can perceive a problem in plenty of time to do something about it. “We’re able to get much better actionable insights that make the firm a less risky business because we’re able to go much further out into the future,” he said......
actionable_information  CFOs  cyber_security  databases  Dodd-Frank  engineering  financial_system  Goldman_Sachs  improbables  information_sources  jujutsu  low_probability  Martin_Chavez  proprietary  regulation  SecDB  SPOF  think_differently  Wall_Street  William_Cohan  worrying 
november 2017 by jerryking
With Deal-Making in the Doldrums, Goldman Tries Something New - The New York Times
OCT. 11, 2017 | WSJ | By JOHN FOLEY.

Goldman Sachs is trying to extricate itself from a box by thinking outside it. The Wall Street firm has set up a small team in what’s known internally as the Innovation Lab, to cook up supposedly clever ideas for big clients. The resulting acquisitions may end up destroying value for the shareholders of the companies involved, but Goldman’s own investors should be pleased the investment bank is trying new things.
innovation  Goldman_Sachs  idea_generation  experimentation  trading  Wall_Street  investment_banking 
october 2017 by jerryking
At Goldman, He’s David Solomon. At the Club, He’s D.J. D-Sol. - The New York Times
By KATE KELLYJULY 13, 2017
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Goldman_Sachs 
july 2017 by jerryking
How Goldman Sachs Made More Than $1 Billion With Your Credit Score - WSJ
By LIZ HOFFMAN and ANNAMARIA ANDRIOTIS
April 9, 2017

Goldman bought TransUnion , TRU -0.21% the smallest of the three main credit-reporting firms, in 2012. By the time it went public three years later, TransUnion had become a data-mining machine, gathering billions of seemingly insignificant tidbits about ordinary Americans that it analyzed and sold to lenders, insurers and others.....As Goldman and Advent dug into TransUnion’s business, they found the fastest-growing revenue was coming from the company’s dealings with online lending startups, people familiar with the investment said.

These companies, such as LendingClub Corp. and Prosper Marketplace Inc., were using information from credit bureaus to find and vet potential borrowers. They were increasingly hungry for data that could pinpoint borrowers who traditional lenders might overlook or overcharge.....TransUnion’s new owners doubled down on these clients. They recruited Jim Peck, a big-data enthusiast who had run LexisNexis Risk Solutions, as CEO. He spent his first day in the company’s data center.

TransUnion began appearing at fintech conferences. It rebranded itself with a techy, purposeful vibe, wrapping its initials, a lowercase “tu,” in an @ sign. “We’re not just a credit bureau; we’re a force for good,” chirped a 2015 video.

The company spent heavily on technology and acquisitions. It replaced its old mainframe, a relic from the 1970s, with nimbler systems that allow it to splice information in new ways. It built a new data center and started scooping up small companies with niche data sets.....One acquisition tracks public records to help with fraud enforcement related to online shopping, among other things. Another uses utility payments, cellphone billing records and other data points to identify creditworthy borrowers who lenders might have overlooked, either because they have little or no debt history or potential red flags on their traditional credit reports. ​ ​​ ​​....By the time of its IPO in 2015, TransUnion had 30 million gigabytes of data, growing at 25% a year and ranging from voter registration in India to drivers’ accident records in the U.S. The company’s IPO documents boasted that it had anticipated the arrival of online lenders and “created solutions that catered to these emerging providers.”

Goldman itself is a customer. In 2016, the Wall Street firm launched Marcus to make online personal loans of a few thousand dollars. Its main pitch to borrowers: refinance expensive credit-card debt at lower rates.

Goldman buys the names and credit information of potential borrowers from TransUnion and sends direct-mail and other advertising to them.
Goldman_Sachs  TransUnion  Advent  private_equity  credit_reporting  credit_scoring  Equifax  Experian  data  data_driven  Marcus  subprime  solution-finders 
april 2017 by jerryking
As Goldman Embraces Automation, Even the Masters of the Universe Are Threatened
February 7, 2017 | MIT Technology Review | by Nanette Byrnes.

Automated trading programs have taken over cash equities trading function at Goldman Sachs. A job that once employed 600 people in 2000, is now in 2017 being done by 2 people, with the rest of the work, supported by 200 computer engineers. Marty Chavez, the company’s deputy chief financial officer and former chief information officer, explained all this to attendees at a symposium on computing’s impact on economic activity held by Harvard’s Institute for Applied Computational Science last month.....Chavez, who will become chief financial officer in April, says areas of trading like currencies and even parts of business lines like investment banking are moving in the same automated direction that equities have already traveled.....Complex trading algorithms, some with machine-learning capabilities, first replaced trades where the price of what’s being sold was easy to determine on the market, including the stocks traded by Goldman’s old 600.

Now areas of trading like currencies and futures, which are not traded on a stock exchange like the New York Stock Exchange but rather have prices that fluctuate, are coming in for more automation as well. To execute these trades, algorithms are being designed to emulate as closely as possible what a human trader would do,.....Goldman’s new consumer lending platform, Marcus, aimed at consolidation of credit card balances, is entirely run by software, with no human intervention, Chavez said. It was nurtured like a small startup within the firm and launched in just 12 months,
automation  Goldman_Sachs  Martin_Chavez  CFOs  CIOs  risk-assessment  platforms  human_intervention  Marcus  software  algorithms  machine_learning  job_displacement 
february 2017 by jerryking
Goldman breaks tradition with unconventional choice
December 17/ December 18, 2016 | Financial Times | Ben McLannahan.

His promotion to chief information officer in 2013 ― after a stint at Credit Suisse and Kiodex, an energy trading software company ― meant that he sat atop Goldman’s biggest division, accounting for about one-third of global headcount.

A big part of that job has been bringing down the amount the bank spends on maintaining old systems, which consume about one-third of Goldman’s annual $3bn tech budgets, according to estimates by Credit Suisse analysts.

He has also taken a page out of Google and Facebook’s playbook and started giving away some of the bank’s trading technology to clients via open-source software, inviting them to use it and improve it.

What sets Mr Chavez apart is “his ability to take decisive action based on what the world will look like in five to 10 years”, says Tom Farley, president of the New York Stock Exchange, who worked with him at Kiodex. “Other people may have a view of the future but they’re afraid to act on it.”

In an address to Goldman interns this summer, Mr Chavez told them that as a new graduate, he wanted to “get busy and do a bunch of things”. When he landed on Wall Street, he learnt that people called that attitude “optionality”.

“You don’t know that these options are going to be worth something, but if you do the work, pay the premium, own a whole bunch of these options on a lot of different outcomes and you’re diversified enough, probably something will work out,” he said.
Goldman_Sachs  Martin_Chavez  CFOs  appointments  Wall_Street  unconventional  SecDB  databases  generating_strategic_options  forward_looking  CIOs  Hispanics  optionality  new_graduates  legacy_tech  playbooks 
december 2016 by jerryking
Edith Cooper Goldman Sachs on talking about race at work - Business Insider
Edith Cooper, Goldman Sachs
Sep. 23, 2016,

Focusing on what you can control and taking mindful steps and positive action towards what matters to you
Goldman_Sachs  African-Americans  Harvard  HBS  women  beyond_one's_control  Wall_Street  human_resources  affirmations  span_of_control  Edith_Cooper 
december 2016 by jerryking
Steven Mnuchin’s Defining Moment: Seizing Opportunity From the Financial Crisis - WSJ
By RACHEL LOUISE ENSIGN, ANUPREETA DAS and REBECCA BALLHAUS
Updated Dec. 1, 2016.

Federal officials expected to suffer as much as $8 billion in losses from IndyMac. That left regulators looking for someone to take over the bank and mitigate the damage. Speed was essential, since the FDIC was bracing for a wave of additional bank failures.

Mr. Mnuchin assembled an all-star cast drawn from his years on Wall Street, including Mr. Soros, hedge-fund manager John Paulson, billionaire Michael Dell’s investment firm and several former Goldman executives, including J. Christopher Flowers. They signed up on the basis that Mr. Mnuchin would personally run the bank, according to people familiar with the matter.

By now, he knew that few bidders would be willing to buy all the failed bank’s assets. And he knew he was taking a giant risk.

At the end of 2008, Mr. Mnuchin persuaded the FDIC to sell IndyMac for about $1.5 billion. The deal included IndyMac branches, deposits and assets. The FDIC also agreed to protect the buyers from the most severe losses for years. That loss-sharing arrangement turned out to be a master stroke.
turnarounds  financial_services  Steven_Mnuchin  Goldman_Sachs  opportunistic  Carpe_diem  economic_downturn  vulture_investing  kairos  seminal_moments  rainmaking  defining_moments 
december 2016 by jerryking
Understanding SecDB: Goldman Sachs’s Most Valued Trading Weapon - WSJ
By JUSTIN BAER
Sept. 7, 2016

traders use the system to track how a position would have performed over the past year, how it might do in the future under different scenarios, and how the holding might alter their broader portfolio. They can also use the system to help determine a price to charge the trade’s counterparty.

But traders aren’t SecDB’s only users. The firm’s risk managers use the system to peer into positions held by a trading desk or business to determine aggregate exposures.

Every Wall Street firm has tools to run each of those functions. But SecDB’s power comes from its universal use throughout the firm, its flexibility to add new variables or new sources of information, and its ability to tap into all of Goldman’s data.
Goldman_Sachs  traders  Wall_Street  databases  counterparties  information_sources  SecDB 
september 2016 by jerryking
Goldman Sachs Has Started Giving Away Its Most Valuable Software - WSJ
By JUSTIN BAER
Sept. 7, 2016

Securities DataBase, or SecDB, the system remains Goldman’s prime tool for measuring risk and analyzing the prices of securities, and it calculates 23 billion prices across 2.8 million positions daily. It has played a crucial role in many of the seminal moments of the firm’s recent history, including its controversial trading just ahead of the financial crisis.....There is perhaps no better sign of the changes that have engulfed Wall Street than this: Goldman has recently started giving clients the tools that made it a trading powerhouse, for free.

The firm’s motives aren’t altruistic; rather, many of the edges that once made Goldman’s traders feared and admired have been blunted. New rules have limited banks’ trading risks, and made it costly to hold large inventories of stocks and bonds on their books. And electronic trading has squeezed margins, dimming the clamor of trading floors across Wall Street....Traders and executives tap into SecDB to inform how to price securities, and how the value of those assets may change with a twist on the dial on any one of thousands of potential variables. That information can be used to analyze potential trades—and then to monitor the risks posed by those positions.

What made it the envy of Wall Street, though, was its ability to scale up to include new classes of securities, new trading desks, even whole businesses. And the data it harnessed was all in one place.
Wall_Street  Goldman_Sachs  tools  traders  risk-management  informational_advantages  software  free  databases  platforms  CIOs  proprietary  slight_edge  Aladdin  Martin_Chavez  scaling  SecDB  seminal_moments  asset_values  scenario-planning  stress-tests 
september 2016 by jerryking
BlackRock to Push Wall Street Chat Tool - WSJ
By JUSTIN BAER and SARAH KROUSE
June 23, 2016

At Goldman Sachs Group Inc., a Symphony investor that contributed its own messaging developments to the platform, the service is now used by most of the firm’s employees across all of its businesses, according to a person familiar with the situation. Goldman traders, for instance, use Symphony to communicate with back-office employees charged with settling trades.

Elsewhere, though, Symphony remains little used or, in some cases, virtually unknown.

Of about a dozen employees reached at financial firms that have invested in the service, some were only aware of small-scale pilot programs in specific corners of their trading floors.

The lack of broader takeup has sown doubts that Symphony would become an alternative to Bloomberg’s multipronged service that costs financial firms $22,000 to $25,000 per employee a year. After attracting bankers and investors to its chat service, Symphony aims to pipe in data, news and other tools, coming closer to the array of functions Bloomberg provides. Symphony charges companies $15 a month per user for the chat service.
BlackRock  messaging  Symphony  Bloomberg  Goldman_Sachs  pilot_programs  traders  back-office  small-scale  chat  Communicating_&_Connecting 
june 2016 by jerryking
Goldman’s Tech Chief Pushes the Bank to Be More Open, Like Him - The New York Times
APRIL 1, 2016 | NYT | By NATHANIEL POPPER.

Today Goldman is trying to change not only that public image, but also some of the central tenets of its culture, like the secrecy and reliance on back-room dealings. The firm’s chief executive, Lloyd C. Blankfein, has said he wants Goldman to be thought of as a tech company — putting it in direct competition for talent with the Googles and Facebooks of the world. No one is more central to these efforts than Mr. Chavez.

Mr. Chavez, who was promoted just over two years ago to oversee the firm’s 9,000 or so computer engineers — nearly a third of the staff — is pushing the 147-year-old firm to, among other things, share more of its data and software with clients. His centerpiece project, Marquee, gives clients access to sophisticated trading data previously available only by phoning a Goldman employee.....Mr. Chavez represents broad pressures across the financial industry. The 2008 economic crisis and the regulations that followed it are forcing banks to become less opaque and more technologically savvy and efficient. This has shifted the center of power in the business away from the trading desks, where it was before the crisis, and toward the programmers and engineers — until recently dismissed as the geeks in the back office....Mr. Chavez says that if efforts like his are successful, clients will see “a very different configuration of the financial services industry than the one we have now.” Goldman will still have the chief product of a bank — money to lend and invest — but he thinks that the ways in which customers get access to that money will rely more on software and less on the bankers who traditionally delivered Goldman’s services.
CIOs  Wall_Street  Goldman_Sachs  Hispanics  transparency  financial_services  Martin_Chavez  war_for_talent  digital_savvy 
april 2016 by jerryking
What my Goldman Sachs training taught me about entrepreneurship - FT.com
March 31, 2015 2:17 pm
What my Goldman Sachs training taught me about entrepreneurship
Jason Gissing
United_Kingdom  alumni  Goldman_Sachs  London  entrepreneur  traders 
november 2015 by jerryking
Goldman Sachs to Give Out ‘Secret Sauce’ on Trading - WSJ
By JUSTIN BAER
Aug. 12, 2015

Goldman will soon offer clients access to more of its in-house tools, such as high-powered databases that analyze markets and manage risk, according to the firm’s executives. Those proprietary systems have long been key elements enabling Goldman to sidestep market turmoil and ring up outsized profits in better conditions.

Given direct access to these tools, Goldman clients could use the technology to build their own trading systems and potentially make purchases independent of the firm.

But the firm’s executives believe the upside outweighs those concerns. Goldman is betting that its clients, such as hedge funds and other money managers, will use the individual applications, or apps, to develop strategies and then execute their trades with the firm.
Goldman_Sachs  tools  risk-management  CIOs  proprietary  traders  trading_platforms  upside  special_sauce 
august 2015 by jerryking
Can John Thornton save Barrick Gold? - The Globe and Mail
RACHELLE YOUNGLAI
Can John Thornton save Barrick Gold?
SUBSCRIBERS ONLY
The Globe and Mail
Published Friday, May. 29 2015
Barrick  gold  mining  John_Thornton  CEOs  relationships  legacies  Goldman_Sachs  boards_&_directors_&_governance  Bay_Street  Nevada  free_cash_flow 
may 2015 by jerryking
John C. Whitehead - WSJ
Feb. 8, 2015| WSJ |

In 2005, Whitehead published a memoir A Life In Leadership: From D-Day to Ground Zero
obituaries  tributes  Wall_Street  books  The_Greatest_Generation  public_service  Goldman_Sachs  philanthropy  investment_banking  memoirs 
february 2015 by jerryking
The man with the key to China: Barrick Gold’s quest to open new doors - The Globe and Mail
RACHELLE YOUNGLAI - MINING REPORTER
The Globe and Mail
Published Friday, Dec. 06 2013

John Thorton is a man who “loves flawless execution” and prefers to work behind the scenes.

When Goldman won the contract to take some of China’s government-controlled telecom services public in 1998, it stemmed from Mr. Thornton’s work.

In the mid-1990s, Mr. Thornton got wind that the vice-premier at the time, Zhu Rongji, wanted to reform some of the country’s state-owned telecoms.

Mr. Thornton, who had taken Britain’s Vodafone public in the late-1980s, arranged for a meeting with the number 2 banker at the newly formed state-owned Chinese investment bank, a Chinese national who did not speak English.

Through a translator late at night in Beijing, Mr. Thornton said: “Here’s the real situation, you call yourself a banker and yet you know nothing about banking. I am in charge of Goldman Sachs Asia and China and I know nothing about any one of those. So we have a perfect marriage here. You’re going to teach me China and I am going to teach you banking and I am going to make you look like a hero in front of Zhu Rongji and everyone else who is important to you. And I don’t need any visibility, credit, anything. All I want to do is understand China out of this whole process.”

Mr. Thornton stressed his experience with Vodafone and the Chinese banker took Mr. Thornton’s request to Wang Qishan, then the head of China Construction Bank (one of China’s four biggest banks) and a protege of Mr. Zhu. Mr. Wang then spoke to Mr. Zhu and Goldman made its foray into China.

Mr. Thornton, Mr. Evans and former U.S. treasury secretary and Goldman chief executive Hank Paulson met Mr. Zhu in Beijing and Goldman got the deal.
Hank_Paulson  mining  Barrick  Goldman_Sachs  boards_&_directors_&_governance  China  relationships  dealmakers  optics  protégés 
december 2014 by jerryking
Goldman Sachs Names Ogunlesi New Lead Director - NYTimes.com
By WILLIAM ALDEN JULY 25, 2014

"We benefited from his wise counsel and probing questions, and admired his graciousness and professionalism. Jim is in our thoughts and we wish him and his family all the best"
African-Americans  boards_&_directors_&_governance  Goldman_Sachs  Wall_Street 
july 2014 by jerryking
GS Elevator Gossip ‏@GSElevator Nov 4
#1: You shouldn't retire until your money starts making more money than you made in your best year.
funnies  Goldman_Sachs  quotes 
march 2014 by jerryking
Open data is not a panacea | mathbabe
December 29, 2012 Cathy O'Neil,
And it’s not just about speed. You can have hugely important, rich, and large data sets sitting in a lump on a publicly available website like wikipedia, and if you don’t have fancy parsing tools and algorithms you’re not going to be able to make use of it.

When important data goes public, the edge goes to the most sophisticated data engineer, not the general public. The Goldman Sachs’s of the world will always know how to make use of “freely available to everyone” data before the average guy.

Which brings me to my second point about open data. It’s general wisdom that we should hope for the best but prepare for the worst. My feeling is that as we move towards open data we are doing plenty of the hoping part but not enough of the preparing part.

If there’s one thing I learned working in finance, it’s not to be naive about how information will be used. You’ve got to learn to think like an asshole to really see what to worry about. It’s a skill which I don’t regret having.

So, if you’re giving me information on where public schools need help, I’m going to imagine using that information to cut off credit for people who live nearby. If you tell me where environmental complaints are being served, I’m going to draw a map and see where they aren’t being served so I can take my questionable business practices there.
open_data  unintended_consequences  preparation  skepticism  naivete  no_regrets  Goldman_Sachs  tools  algorithms  Cathy_O’Neil  thinking_tragically  slight_edge  sophisticated  unfair_advantages  smart_people  data_scientists  gaming_the_system  dark_side 
december 2013 by jerryking
Masters of an Old Game
October 1994 | Vanity Fair | By Nicholas Lemann

The Richest One Percent. The men who walked the quiet halls of the Eastern Establishment guided the U.S. through industrialization, two World Wars, and much of the Cold War. But now that venerable club is being pushed to the sidelines. Nicholas Lemann considers whether is has lost the field.
The_One_Percent  elitism  Wall_Street  law_firms  investment_banking  Goldman_Sachs 
december 2013 by jerryking
Goldman juniors
Nov. 9, 2013 |The Financial Times p16.|

Hotshot university grads should not worry that Goldman Sachs' plan to cut back the hours of junior bankers is just a ruse. They should worry that it's for re...
Goldman_Sachs  Wall_Street  new_graduates 
december 2013 by jerryking
The man with the key to China: Barrick Gold’s quest to open new doors - The Globe and Mail
Dec. 06 2013 | The Globe and Mail | RACHELLE YOUNGLAI - MINING REPORTER.

The former Goldman Sachs president has spent more than 20 years working with Chinese policymakers. He shares Mr. Munk’s vision of turning Barrick into a diversified mining giant and tapping China to join the effort...Mr. Thornton said his Barrick talks with the Chinese have been with the highest levels of the communist government right on down the system. He stresses he does not want what he calls a “transactional” or one-off deal with the Chinese. He wants to build an enduring relationship with the government...Mr. Thornton envisions Barrick first doing one “thing that is relatively modest” with the Chinese. For example, he says Barrick could consider a Chinese construction company for Pascua Lama. Mr. Thornton has not spoken to any such companies about the South American mine and says it’s only an example.

Michael Evans, a Goldman vice-chairman who worked with Mr. Thornton for years in London and Asia, describes Mr. Thornton as a hugely strategic operator who “loves flawless execution” and prefers to work behind the scenes...In the mid-1990s, Mr. Thornton got wind that the vice-premier at the time, Zhu Rongji, wanted to reform some of the country’s state-owned telecoms.

Mr. Thornton, who had taken Britain’s Vodafone public in the late-1980s, arranged for a meeting with the number 2 banker at the newly formed state-owned Chinese investment bank, a Chinese national who did not speak English.

Through a translator late at night in Beijing, Mr. Thornton said: “Here’s the real situation, you call yourself a banker and yet you know nothing about banking. I am in charge of Goldman Sachs Asia and China and I know nothing about any one of those. So we have a perfect marriage here. You’re going to teach me China and I am going to teach you banking and I am going to make you look like a hero in front of Zhu Rongji and everyone else who is important to you. And I don’t need any visibility, credit, anything. All I want to do is understand China out of this whole process.”

Mr. Thornton stressed his experience with Vodafone...
Barrick  gold  mining  John_Thornton  CEOs  relationships  Goldman_Sachs  personal_connections  Tsinghua  boards_&_directors_&_governance  barter  transactional_relationships 
december 2013 by jerryking
On Wall Street, No Place Like Home - WSJ.com
Nov. 13, 2013 | WSJ| By Justin Baer and Julie Steinberg.

Across Wall Street, bankers, traders and other employees are finding fewer reasons—or opportunities—to leave. Waves of consolidations and layoffs, both before and since the financial crisis, have left people with fewer places to go. Muted economic growth, a rise in the amount of bonuses that are deferred for a few years and stiffer rules on risk-taking have given Wall Street firms little incentive to hire aggressively.

And while hedge funds and private-equity firms have long taken in Wall Street refugees, they aren't hiring as much as they used to, experts said.

"It's not that easy to go,"
Wall_Street  Goldman_Sachs  tenure  slow_growth 
november 2013 by jerryking
Professional firms: Simply the best
Apr 13th 2013 | The Economist |

What It Takes: Seven Secrets of Success from the World’s Greatest Professional Firms. By Charles Ellis. Wiley; 290 pages; $40 and £26.99.

During a long career advising senior professionals, Mr Ellis found that a handful of firms were almost universally regarded by their peers as the best in their particular business. As well as McKinsey (management consulting) and Goldman (investment banking), they included Capital Group (investment management), the Mayo Clinic (health care) and Cravath, Swaine & Moore (law). He was surprised to discover that each of the firms had several things in common. These include leaders who devote their lives to serving their firm rather than enriching themselves (though that tended to follow naturally), a good sense of what motivates staff to get up early and work late and the ability to get individualistic professionals to function unusually well in teams.

Above all, these firms are fanatical about recruiting new employees who are not just the most talented but also the best suited to a particular corporate culture. These firms’ bosses spend a disproportionate amount of time on the recruitment process, often putting it before other more immediately lucrative demands on their time. McKinsey interviews 200,000 people each year, but selects just over 1%.

Each McKinsey applicant can be interviewed eight times before being offered a job; at Goldman, twice that is not unheard of. At Capital a serious candidate is likely to be seen by 20 people, some more than once. Recruitment, these firms believe, is the start of a lifelong relationship. At the same time, Goldman and McKinsey also have a policy of helping their staff to find suitable work elsewhere, all in the expectation that they will eventually become loyal customers.
best_of  books  book_reviews  disproportionality  Goldman_Sachs  high-achieving  lifelong  McKinsey  organizational_culture  outplacement  overachievers  professional_service_firms  recruiting  relationships  selection_processes  selectivity  serving_others  talent_management 
april 2013 by jerryking
Lessons for Entrepreneurs in Rubble of a Collapsed Deal - NYTimes.com
January 29, 2013, 7:44 pm9 Comments
Lessons for Entrepreneurs in Rubble of a Collapsed Deal
By STEVEN M. DAVIDOFF
Goldman_Sachs 
january 2013 by jerryking
Business continuity: Making it through the storm
Nov 10th 2012 | The Economist |Anonymous.

Hurricane Sandy was another test of how well businesses can keep going when disaster strikes...GOLDMAN SACHS’S latest shrewd investment was in sandbags and back-up electricity generators. As Hurricane Sandy approached New York, the bags were stacked around its headquarters. It was one of the few offices in downtown Manhattan to remain dry and well-illuminated as “Frankenstorm” battered the city.

Meanwhile, a block farther down West Street, the headquarters of Verizon were awash with salty flood water, soaking cables delivering phone and internet services to millions of customers. The firm was able to reroute much of the traffic through other parts of its network, but local service was disrupted....Sandy is the latest catastrophic event to test the readiness of the world’s leading firms to cope with disaster. Most firms have improved “business continuity” preparations over the years. The Y2K scare at the turn of the century moved IT risk high up the list of worries. The attacks of September 11th 2001 warned firms of the danger of putting all their computers (and staff) in the same place (jk: concentration risk; SPOF)....“Firms are increasingly reliant on networks, but often fail to understand the risks that networks bring,” says Don Tapscott, a management guru. Global supply chains, just-in-time and shifting to the “cloud” tend to bind once unrelated activities ever closer together, making them more prone to failing at the same time. The current fad for moving data to the “cloud” may appear to reduce risk because there is so much spare capacity in the web. Yet some firms offering cloud services have more concentrated operations than (jk: concentration risk).

Firms are starting to recognise their vulnerability to cyber-attack, but few have much idea what they would do if it happened. Mr Tapscott thinks boards should have a committee explicitly focused on understanding IT and network risks and ensuring they are properly managed....Dutch Leonard, a risk expert at Harvard Business School, says that the best-prepared firms use a combination of planning for specific events and planning to cope with specific consequences, such as a loss of a building or supplier, regardless of the cause. He also recommends copying an approach used by the armed forces: using a group of insiders to figure out how the firm could be brought down [ jk: white hats]....Firms should make lobbying government to invest heavily in upgrading that infrastructure a core part of their risk-management strategy, argues Irwin Redlener of the National Centre for Disaster Preparedness at Columbia University.

Goldman Sachs has long been a leader in disaster planning because it understands that the situations in which it might not be able to function are exactly the sort of events when very large changes in the value of its investments could occur, says Mr Leonard. Yet too many firms underinvest in planning for disaster because they don’t think it will pay, at least within the short-term timeline by which many now operate, reckons Yossi Sheffi of MIT.
beforemath  boards_&_directors_&_governance  business-continuity  catastrophes  compounded  concentration_risk  crisis  cyberattacks  cyber_security  disasters  disaster_preparedness  Don_Tapscott  Goldman_Sachs  Hurricane_Sandy  isolation  natural_calamities  networks  network_risk  New_York_City  optimism_bias  preparation  readiness  red_teams  resilience  risks  risk-management  short-term  SPOF  step_change  supply_chains  surprises  underinvestments  valuations  vulnerabilities  white_hats 
november 2012 by jerryking
'Congratulations, you've become a Goldman Sachs partner' | Business | The Guardian
Jill Treanor, City editor
The Guardian, Thursday 8 November 2012

To be selected, candidates will have survived a process known as "cross-ruffing", a term borrowed from the card game bridge. Insiders describe it as a rigorous cross-checking procedure that involves teams of Goldman partners interviewing each other about potential candidates.

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The individuals being cross-ruffed should, in theory, be unaware that their strengths and weaknesses are being scrutinised. They are not interviewed........ describes how partners are given the job of interviewing their fellow partners to discuss candidates put forward by divisional heads. The partner selected to cross-ruff is always drawn from another part of the firm, possibly even in another part of the world. No stone is left unturned — every aspect of their career to date is scrutinised — the deals they have worked on, the profit they have generated and the way they are regarded by their colleagues and staff.

The process, which Cohan believes was formalised by former Goldman banker and existing board member Stephen Friedman, continues even though the firm was floated on the stock market in 1999 and is no longer a partnership in the conventional sense. But the idea of partnership was retained "to maintain various core aspects of the firm's partnership culture among its leaders, including teamwork, client focus and a commitment to excellence".
Goldman_Sachs  partnerships  movingonup  howto  Wall_Street  career_paths  investment_banking  cross-checking  William_Cohan 
november 2012 by jerryking
The J. Aron Takeover of Goldman Sachs - NYTimes.com
October 1, 2012, 12:32 pm3 Comments
The J. Aron Takeover of Goldman Sachs
By SUSANNE CRAIG

Gary D. Cohn, Goldman’s president and chief operating officer, was hired as a metals trader in 1990 and quickly established himself as a go-to guy to fix tricky situations.
Goldman_Sachs  Gary_Cohn  traders 
october 2012 by jerryking
Goldman Sachs to Help Fund NYC Program to Cut Jail Recidivism
Aug 2, 2012 | Bloomberg | By Henry Goldman.

New York City will try to reduce the recidivism of young male convicts housed on Rikers Island with a four-year program run by nonprofits and financed by Goldman Sachs Group Inc. (GS)

The bank will invest $9.6 million through a so-called social-impact bond, meaning it will profit only if the plan achieves its goals. New York officials said the program is the first of its kind in the U.S.

“In this new model, private investors fund the intervention through a nonprofit contractor and the government pays the contractor only if the program meets its goals,” Mayor Michael Bloomberg’s office said in a news release.

For Goldman Sachs to earn a profit, the program will need to reduce recidivism by at least 10 percent. City payments to MDRC, a nonprofit social-policy group created by the Ford Foundation that will monitor and run the program, also will be based on its degree of success. The Vera Institute of Justice will independently assess the program’s effectiveness, the mayor’s office said.
Goldman_Sachs  New_York_City  recidivism  incarceration  nonprofit  bonds  Michael_Bloomberg  social_finance  social_impact 
august 2012 by jerryking
Goldman Builds Ambitious Role In Buyout Realm - WSJ.com
October 31, 2006 | WSJ | By HENNY SENDER

Goldman Builds Ambitious Role In Buyout Realm
Loans to Private-Equity Firms Edge Out Commercial Bankers; Wearing Hat as Investors, Too

Investment banks are building their financing capabilities as they build their own buyout, or private-equity, businesses....Goldman's footprint has been especially deep on complicated deals like Texas Genco. The power company was bought by the four buyout firms -- Blackstone Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. and Texas Pacific Group. When those private-equity firms won Texas Genco in a hotly contested auction, they counted on Goldman for several aspects of their offer.

In addition to arranging the loans, Goldman arranged derivatives transactions that protected the new owners against the possibility of a plunge in energy prices. This hedge gave comfort to other lenders, making the financing less costly than it would otherwise have been.

Similarly, in 2005, when Cerberus Capital Management LP bought paper and timber operations from MeadWestvaco for $2.3 billion, Goldman led the financing and arranged hedges for the new owners against fluctuations in the prices of pulp, natural gas and currencies.

"If a deal requires creativity, Goldman will figure out how to make it work," says Scott Sperling of private-equity firm Thomas H. Lee Partners LP in Boston.
buyouts  private_equity  Goldman_Sachs  funding  LBOs  Cerberus  investment_banking  creativity  derivatives  hedging  owners 
april 2012 by jerryking
Networking Lessons According to an ex-Goldman partner, women need to get a lot better at the quid pro quo. - November 10, 2003
November 10, 2003 | Fortune | Interview of Connie Duckworth by Bethany McLean.

Networking is the glue of all business--it's the foundation of how business gets done. Your relationships drive how successful you'll be. I had guidance from very good mentors, all of whom were men. There were no women at the time...you can ask someone for something and they'll ask for something back, and that's a norm and an expectation, not an infringement on a personal relationship. It's not personal. It's business.
networking  Goldman_Sachs  women  relationships  mentoring  personal_relationships  quid_pro_quo  transactional_relationships 
march 2012 by jerryking
Jon Corzine and J. Christopher Flowers Friendship Tossed in MF Global Storm - WSJ.com
NOVEMBER 10, 2011 | WSJ | By GINA CHON
Friendship Is Tossed in MF Global Storm
Flowers and Corzine Relationship Dates to Goldman Days
Jon_Corzine  bankruptcies  friendships  Goldman_Sachs 
november 2011 by jerryking
Goldman Goes Hunting In Battered Loan Sector After a Record Quarter - WSJ.com
MARCH 14, 2007 | WSJ | By KATE KELLY.

Goldman Goes Hunting In Battered Loan Sector After a Record Quarter
...Seeing growing turmoil in the market for risky home loans as an opportunity, Goldman Sachs Group Inc. is looking at pushing deeper into the business, ramping up its own subprime-lending operation and pondering the purchase of another.

On the heels of reporting record and expectation-smashing fiscal first-quarter profits that kicked off Wall Street's earning season, Goldman Chief Financial Officer David Viniar indicated that the brokerage is perusing the subprime sector for fire-sale prices.

Goldman's plans come amid a meltdown in the subprime-mortgage market, which caters to higher-risk borrowers with sketchy credit records and lower incomes.
Goldman_Sachs  subprime 
october 2011 by jerryking
U.S. Targets Insider Culture in Gupta Case - WSJ.com
OCTOBER 27, 2011 | WSJ | By MICHAEL ROTHFELD, SUSAN PULLIAM and S. MITRA KALITA. Gupta Case Targets Insider Culture
Gupta Indictment Shows New Twist in Crackdown; Case Is Gamble for Prosecutors
McKinsey  insider_trading  SEC  Wall_Street  prosecutors  Rajat_Gupta  P&G  Goldman_Sachs  Preet_Bharara  Department_of_Justice 
october 2011 by jerryking
Imagine if Merrill had been smart like Goldman | Features
13 October 2011 | | Breakingviews |By Rob Cox

Imagine if Merrill Lynch had been smarter, like Goldman Sachs, a few years ago. The investment bank would have realized it was holding too many dodgy mortgage securities and sold them off to buyers who didn’t yet think the market would blow. Those clients might have then landed in trouble. But Merrill would have avoided a fire sale to Bank of America.

That’s the basic premise behind the latest film to emerge in the financial crisis genre, “Margin Call.” The movie, which premiered at Sundance and is slated to open in U.S. theaters next week, presents, however clumsily, a fictional morality tale with real parallels in the Wall Street banking panic that began in 2007.
Merrill_Lynch  Goldman_Sachs  films  movies  economic_downturn  Wall_Street  selling_off 
october 2011 by jerryking
Amid Protests, Blankfein Cancels College Talk - NYTimes.com
October 10, 2011, 7:13 pmInvestment Banking
Amid Protests, Blankfein Cancels College Talk
By KEVIN ROOSE
Colleges_&_Universities  Occupy_Wall_Street  speeches  Lloyd_Blankfein  Goldman_Sachs 
october 2011 by jerryking
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