Goldman sold BP Right Before Spill

Discussion in 'Wall St. News' started by ipatent, Jun 2, 2010.

  1. ipatent


    Firm's stock sale nearly twice as large as any other institution; Represented 44 percent of total BP investment

    The brokerage firm that's faced the most scrutiny from regulators in the past year over the shorting of mortgage related securities seems to have had good timing when it came to something else: the stock of British oil giant BP.

    According to regulatory filings, has found that Goldman Sachs sold 4,680,822 shares of BP in the first quarter of 2010. Goldman's sales were the largest of any firm during that time. Goldman would have pocketed slightly more than $266 million if their holdings were sold at the average price of BP's stock during the quarter.

    If Goldman had sold these shares today, their investment would have lost 36 percent its value, or $96 million. The share sales represented 44 percent of Goldman's holdings -- meaning that Goldman's remaining holdings have still lost tens of millions in value.

    The sale and its size itself isn't unusual for a large asset management firm. Wall Street brokerages routinely buy and sell huge blocks of shares for themselves and their clients. In light of a recent SEC lawsuit arguing that Goldman kept information about a product they sold from their clients, however, the stock sale may raise fresh concern among Goldman's critics. Goldman is also a frequent target of liberals and journalists, including Rolling Stone's Matt Taibbi, who famously dubbed the firm a "vampire squid."
  2. I could see with oil at the prices they were at and GS best guess as to the economy they felt that oil may be under pressure and that would effect BP probably the most of the majors.

    There is a reason why they are the smartest guys in the room.

    The only real question is do you own GS and if not why not?

    you=traders in general not the OP
  3. What's the point here exactly? That Goldman somehow knew about the oil spill months in advance, and sold thus taking advance of their clients???? Whoever wrote this article deserves the moron of the day award.

  4. Goldman blew up the rig. To make 140 million? Yawn.
  5. This news fits in the with the shorting (or options activity) of airline stocks prior to 911, and of course, confirms the market is prescient.


    Professor Nutmeg

  6. GS probably did not blow up the rig, but they certainly would have known something was wrong from informants on the rig:

    BP Pressured Rig Worker to Hurry Before Disaster, Father Says
  7. risky63


    my friend told me that it was a mini sub from n.korea......
    and he also believes that we didn't go to the moon, it was done on a set in hollywood.:D
    when you smoke your breakfast, you get "insight" into what is real.
  8. No. EPA blew up the rig as an excuse to stop drilling and promote "Cap 'n Tax".
  9. Fair call but GS would have went short. A sell would be "react" a short would have been "act".
  10. By all means I'm NOT defending criminal bankers.

    But while they sold some BP, how much did they hold? What is their P/L on that?

    To every point is a counterpoint. The media does not want you to know that. They want to create hype so you tell people about what you read (or watched) at media outlet XYZ. Then the MEDIA makes more money. Who's the criminal?

    I'd rather see five years of their trading in BP before making any conclusions.
    #10     Jun 3, 2010