Skip to comments.Goldman Takes 'Private' Equity To a New Level (2007 article)
Posted on 10/04/2008 6:02:16 PM PDT by Lorianne
Firm's Trading System Lets Unregistered Stock Reach Exclusive Market ___ Goldman Sachs Group Inc. ranks as the most profitable securities firm on Wall Street -- reflecting its mastery of trading on the world's public markets.
Now Goldman is turning that franchise on its head, creating its own private system to trade the stocks of companies that don't want the scrutiny and regulatory burdens of going public.
The new system, GS TRuE -- short for Goldman Sachs Tradable Unregistered Equity -- was announced two weeks ago and made its debut on Monday with an $880 million sale of a 15% stake in Oaktree Capital Management LLC, an alternative-investment manager.
It is the first of several new, private exchanges like these being considered by Wall Street firms and others. Nasdaq is also planning its own new market for smaller, unregistered securities.
These markets will generally be closed to individual investors. For instance, Goldman's market is open only to large institutional investors with assets of more than $100 million. That is because the stocks traded on GS TRuE aren't registered with the Securities and Exchange Commission and issuers aren't subject to SEC regulations designed to protect individual investors.
(Excerpt) Read more at online.wsj.com ...
I wonder, are we bailing out the members of the $100 million and up club?
Can’t post on FR. But a great read.
When did Paulsen leave the company? This does not sound good at all. I wonder how much more of this has been going on.
Seventeen months ago, huh?
And nobody noticed?
Great another scam for bailout number II.
I think he said “Surprise, surprise, surprise” :)
More on Goldman Sachs’ role in the meltdown in this excellent article:
How AIG’s Collapse Began a Global Run on Banks
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