Goldman Riskier Than Citigroup

Bond markets slammed Goldman Sach this week, making the firm pay more for cashizzle then even the bailed-out Citigroup. Goldman’s yield rose to 2.79 percentage points over Citigroups’ 2.29. At the end of March, before the legal and regulatory headaches began, Citigroup’s spread was wider than Goldman’s by .45 percentage points. Higher yields on debt usually indicate a higher risk of default or other negative credit events. Concerns continue to mount over how long and how deep the firm will be tainted by the SEC’s civil lawsuit and the investigation by federal prosecutors, and what other skeletons the scrutiny might shake out.

Blankfein’s Bonds Are Riskier Bet Than Pandit’s: Credit Markets [Bloomberg]


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  1. hejustlaughs says:

    This will only be temporary. Goldman Sachs is a profit generating machine.

  2. ARP says:

    I think this is an emotional reaction on the part of investors. I think GS’s fundamentals are better. Even if they end up paying a fine or have a criminal indictment, they’ll delay and then eventually settle for pennies on the dollar for what they should have paid.

    Citi, on the other hand, is simply stretched too thin and its going to be a while before they can reel that back in.

    • QuantumRiff says:

      I think the investors are very, very scared that the US government is going to get as mad as the taxpayers.. and do something rash, like make them play fair, or have some stringent regulations.

  3. KyleOrton says:

    Goldman Sachs should be writing into the Consumerist regarding the SEC’s failure to send very large…messages…in discrete packaging. “G” didn’t have bond yields and investor confidence to worry about.

  4. Blueskylaw says:

    Goldman Sachs takes your money and their experience and turns it into their money and your experience.

  5. 3rdUserName says:

    Where did I hear this line from… “The joke on Wall street is the FED works for Goldman Sachs.” Anyone?

  6. vastrightwing says:

    If you’re interested in learning more about G.S. just Google “Matt Taibbi” and Goldman. It is true, Goldman alumni are the government. You’d be hard pressed to find any government agency where G.S. alumni weren’t in charge or very high up in the organization. If there is a real investigation, they can turn the lights out now. My guess is, this is a dog and pony show and a few G.S. people will get a wrist slap.

    • craptastico says:

      i’d hope so since GS didn’t do anything wrong. they acted as the middle man in a trade. one side won, one side lost. that’s the way the business works. it’s hardly newsworthy other than a few congressman that think yelling at GS executives as if they were children will get them reelected. maybe the congressmen should try actually doing their jobs instead of wasting time on a dog and pony show