Goldman Executives Unloaded $700m of Stock, After Lehman Brothers Collapse

July 14, 2009

(ChattahBox)—A Recent filing with the SEC revealed that Goldman Sachs executives sold stock worth nearly $700 million, soon after Lehman Brothers collapsed and during the time the firm received a $10 billion federal bailout.

These stock sales are sure to raise the ire of Congressional lawmakers, as Goldman is poised to announce one of its strongest ever second-quarter earnings, after paying back TARP funds to the U.S. government.

During an eight-month period, Goldman partners sold more than $691 million in company stock. A comparable period from September 2007 to April 2008, when stock prices were higher, shows Goldman executives sold only $438 million in stock.

Goldman officials say the unusually high stock sales by partners could have been in response to margin calls, because of the company stock put up as collateral for loans.

Stock sales by Goldman partners have always raised eyebrows, but certainly more so, when such a large volume of company stock was unloaded immediately after Lehman brothers went under.

In related news Goldman Sachs reported earnings profit surge of 65 per cent to $3.44 billion in the quarter ending June 26, this morning, Goldman Sachs, which recently returned bailout funds worth $10 billion to the Federal government, recorded second-quarter revenues to the tune of $13.76 billion.

Source


Comments

Got something to say? **Please Note** - Comments may be edited for clarity or obscenity, and all comments are published at the discretion of ChattahBox.com - Comments are the opinions of the individuals leaving them, and not of ChattahBox.com or its partners. - Please do not spam or submit comments that use copyright materials, hearsay or are based on reports where the supposed fact or quote is not a matter of public knowledge are also not permitted.