Goldman Sachs has reported a huge profit of $3.44 billion for the second quarter ending June.
Not surprising. Read this ...
As the story goes. the head of risk management at Goldman Sachs identified the risk of mortgage-backed securities (subprime) early on and raised the alarm to Goldman's executive board. He made his recommendation to sell off as much of the potentially "toxic" securities as he could, and for those that he couldn't sell, he secured insurance against their risk with a reinsurer.
Unfortunately, the insurance was with AIG. AIG almost took Goldman down, but for the timely bail out from the US government. Good to see wise companies like Goldman Sachs emerging stronger.
In the coming months more such stories will emerge. Stories of wise men who rose above blind greed and foolishness.
Watch this space.
By the above extract is from Chaotics by Philip Kotler and John Caslione.
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