Perfection of Rebirth

Chapter 878 Opening
"Bilson, if I'm not mistaken, including Goldman Sachs, the entire Wall Street is or is preparing for large-scale layoffs?"

Jiang Hui did not refute Bilson's belief that the impact of the subprime mortgage crisis would not exceed that of the Great Depression in 1929. In such matters, facts often speak louder than words, and it is meaningless to waste more saliva now.

"Jiang, who did you hear that from?"

Jiang Hui's seemingly ordinary sentence aroused Bilson's high vigilance.As the president of Goldman Sachs Island Branch, Bilson has a relatively high status within Goldman Sachs and belongs to the top group of partners.

As a leading international investment bank, Goldman Sachs provides a wide range of investment, consulting and financial services to the global financial market.Although in August 1998, the Goldman Sachs partner meeting decided to restructure Goldman Sachs into a joint stock company, thus ending the history of partnership investment banking, the partnership system of Goldman Sachs played a vital role in its development process. .

A partnership company refers to an organizational form in which two or more partners own the company and share the profits of the company. The partners are the owners or shareholders of the company.Its main features are: the partners share the operating income of the enterprise and jointly assume unlimited liability for operating losses; it can be operated by all partners, or it can be operated by some partners, and other partners only contribute capital and are responsible for their own profits and losses.There are two types of partnerships in U.S. law: general partnerships and limited liability partnerships.

A general partnership is composed entirely of general partners, who all bear unlimited joint and several liability for the debts of the partnership; partners in a limited liability partnership are composed of general partners and limited partners.General partners bear unlimited joint and several liabilities for partnership debts, while limited partners usually only bear limited liabilities for partnership debts, and undertake unlimited joint and several liabilities for partnership debts under exceptional circumstances.

Since the 90s, the headquarters of Goldman Sachs' world-famous Wall Street "85" building has been the place where investment banking elites work most diligently. Being a partner of Goldman Sachs means having countless wealth.

Goldman Sachs has a very clear punishment and incentive mechanism for partners, and executives generally have a strong sense of risk and responsibility.This has also formed Goldman Sachs' unique pursuit of long-term value and an ambitious culture.Goldman became the bank of choice for aspiring bankers, where working was a status symbol.

As the head of the island company, Bilson has a very high status among the partners of Goldman Sachs. Naturally, he is also well aware of the company's upcoming layoff plan.

At such a time when a large-scale layoff plan is about to be announced, it is difficult for people not to question where Jiang Hui's news came from when he heard about Goldman Sachs' layoffs from Jiang Hui's mouth.

You know, Goldman Sachs' layoff plan is only brewing among high-level employees, and has not been announced to ordinary employees.And now the entire Wall Street is a bit flustered, and everyone is trying to reduce the impact of layoffs on the market as much as possible.

"Bilson, you don't need to hear anyone, you can guess it. Although the US Treasury and the Federal Reserve have launched various measures to reduce the impact of the subprime mortgage crisis, but this The crisis cannot be stopped by these measures at all, I think President Bilson should have a more intuitive understanding, right?" Jiang Hui said.

Throughout the first quarter of 2008, Wall Street and even the US government were desperately trying to put out the fire, but the effect did not seem to be very good.

Not only is the effect not good, but the situation seems to be getting worse.

"While other financial institutions have indeed encountered various problems, we at Goldman Sachs are still profitable."

Wall Street symbolizes the financial center of the United States and even the financial center of the world, while the financial companies on Wall Street are the meaning of this street and the soul of the entire American economy. Citigroup, Lehman, Merrill Lynch and Goldman Sachs, each name is It will become a testament to the history of the United States. With the process of global economic integration, the fall of this prosperous street will not only affect the United States, but also affect the lifeline of the global economy.

While Wall Street's investment giants were busy counting losses from the subprime mortgage crisis, Goldman Sachs Chairman and CEO Lloyd Blankfein was all smiles.

Goldman Sachs, the largest investment bank in the United States, officially announced at the recent shareholder meeting that it will give CEO Blankfein a "super big red envelope" of about US$1 million to reward him for his outstanding efforts in responding to the subprime mortgage crisis. contribute.As a result, he became one of the company executives who received the most one-time rewards in Wall Street history.

In the reward plan announced by Goldman Sachs, Blankfein's huge "red envelope" includes: 5397 million US dollars in cash, 4576 million US dollars worth of stocks and options.That's far more than his base salary of $60.That adds up to nearly $1 million in his earnings last year.This is nearly double his income in 2006, setting a new record for Wall Street investment banks.

In the past 2007, Goldman Sachs successfully survived the subprime mortgage crisis sweeping Europe and the United States, and Blankfein is undoubtedly the biggest contributor.

Before the subprime mortgage crisis fully broke out, Blankfein and his team realized the future. When Citigroup and others were still buying subprime loans, Goldman Sachs Large-scale short selling of subprime mortgage assets.

By the end of 2007, Goldman Sachs had made as much as $40 billion in profits by shorting subprime loans.This move not only successfully avoided the subprime mortgage crisis, but also enabled Goldman Sachs to achieve outstanding performance far surpassing competitors such as Citigroup and Merrill Lynch.

So Bilson said "We are still profitable at Goldman Sachs", which is really not wrong.

You know, at the same time, Citibank and Lehman lost their underwear.

"Yes, I also admire Goldman Sachs for being able to realize the impact of the subprime mortgage crisis at an early stage, so as to make arrangements in advance, not only avoiding losses, but also earning an extra profit. However, precisely because Goldman Sachs clearly understood the The impact of the subprime mortgage crisis, I think you should better understand that this crisis has just begun, and it is too early to celebrate victory now."

Jiang Hui took a sip of coffee, looked at Bilson with a half-smile and said.

Goldman Sachs will be willing to sell Sanyo's shares. In addition to Sanyo's performance in recent years, the more important factor is that Goldman Sachs realizes that the subprime mortgage crisis will become more violent.

Winning at the beginning does not necessarily mean that you are the ultimate winner, so you start to shrink your global business and sell some unimportant assets in order to obtain more cash to deal with various possible risks.

In a crisis, cash is king.

This sentence is not in vain.

(End of this chapter)