Goldman Banged By DOJ; 5bil MBS Hickey

goldman sacks

( after the close of trading on Thursday, Goldman Sachs (NYSE:GS) made a $5.1 billion settlement with the U.S. Department of Justice, AGs from NY and IL and two other federal agencies in connection with the big bank’s underwriting and sale of mortgage-backed securities (MBS) sounds whopping, but seemed to have little impact on the Squid’s stock price in after-hours trading ..Below extract courtesy of CNBC..

Goldman Sachs  said Thursday that its fourth-quarter earnings will take a roughly $1.5 billion hit as it has reached a nearly $5.1 billion settlement agreement in principle related to its “securitization, underwriting and sale of residential mortgage-backed securities (MBS) from 2005 to 2007.”

goldman-sachs-squidThe bank said in a Thursday release that its agreement in principle will resolve actual and potential claims from the Department of Justice, the New York and Illinois Attorneys General, the National Credit Union Administration and the Federal Home Loan Banks of Chicago and Seattle.

The terms of the agreement say that Goldman will pay a $2.385 billion penalty, make $875 million in cash payments and provide $1.8 billion in consumer relief. The bank said that the relief will be partly composed of principal forgiveness for underwater homeowners and distressed borrowers.

Goldman will also contribute to construction financing, affordable housing, and debt restructuring support.

Shares of the Squid traded slightly negative in after-hours action.

The agreement in principle is still subject to final negotiation of the documentation, the bank said.

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This BrokerDealer Gives Back and Helps Lead The Way

army ranger lead the way fund marketsmuse update blog update is honored to re-play the news update profiling minority brokerdealer Mischler Financial’s mission to support Army Ranger Lead The Way Fund, the non-profit dedicated to supporting the families of US Army Rangers killed in the line of duty and service-disabled Rangers and their families in need of financial support that is not made available by the federal government.

(r) Mischler Fixed Income Trader Glen Capelo (c) Duke University Coach K” Krzyzewski (r) Mischler CEO Dean Chamberlain

(r) Mischler Fixed Income Trader Glen Capelo (c) Duke University Coach K” Krzyzewski (r) Mischler CEO Dean Chamberlain

Oct 5 2015–Stamford, CT and Newport Beach CA–Mischler Financial Group, Inc., the financial industry’s oldest and largest institutional brokerage and investment bank owned and operated by Service-Disabled Veterans is pleased to have served as a Silver Sponsor for the 2015 Army Ranger Lead The Way Fund Gala. Silver Sponsors contributed a minimum of $25,000; proceeds to Lead The Way are dedicated to support service-disabled US Army Rangers and the families of Rangers who have died, have been injured or currently serving in harm’s way around the world.

This year’s annual gala took place September 30 at New York’s Chelsea Piers and NBC News Anchor Tom Brokaw served as Master of Ceremonies. The 2015 Lead The Way event paid tribute to 5-time NCAA champion and college basketball legend Mike “Coach K” Krzyzewski, a US Military Academy at West Point Graduate (USMA ’69) and a former classmate of Mischler’s Founder and Chairman Walt Mischler. Coach K served two tours of duty prior to his career as a world famous university basketball coach.

Mischler Financial’s VP of Capital Markets Robert MacLean (USMA ’02), who served seven years as a US Army Ranger and is a two-time recipient of the Bronze Star, served as a member of this year’s Lead The Way Fund Host Committee. MacLean shared that honor with a short list of military veterans who have since forged a path on Wall Street at firms that include among others, Goldman Sachs, JPMorgan, UBS, Credit Suisse, Barclays, and Fortress Investment Group.

After Coach K retired as a Captain in the US Army, he then served five years as Head Coach for the USMA before accepting the role of Head Basketball Coach for Duke University’s Blue Devils in 1980. During the past 35 years, Coach K has not only led his team to five NCAA champions, he has dedicated the past nearly four decades to contributing his thought leadership to an assortment of national and local philanthropic initiatives.

Stated Mischler Financial Group CEO Dean Chamberlain, also an alumnus of the USMA (’85) who served two tours of duty prior to injuries sustained in the line of duty, “In addition to personal contributions on the part of our firm’s leaders, Mischler provides year-round support to a select group of military veteran and SDV-focused philanthropies and we are particularly honored and proud to continue our ongoing support of Lead The Way, one of the most impactful organizations dedicated to providing assistance to military veterans and their families.”

Goldman Smacked: Finra Fine of $1.8mil re OATS Violation

(Bloomberg) — BrokerDealer Goldman Sachs Group Inc agreed to pay $1.8 million to resolve Financial Industry Regulatory Authority claims that one of its units submitted inaccurate trading information over a period of eight years.Goldman Sachs agreed to resolve the claims without admitting or denying the findings, Finra said in a statement Monday. Wall Street’s self-funded regulator accused the bank of sending bad data to the Order Audit Trail system, which Finra uses to monitor the trading practices of regulated firms.

“OATS data is integral to Finra’s automated market surveillance program to detect manipulative activity and other potential violations of Finra rules and federal securities laws,” Thomas Gira, executive vice president of market regulation, said in the statement.

From July 2006 to March 2015, Goldman Sachs transmitted inaccurate or incomplete information on more than 20 percent of all trading data submitted to Finra, the regulator said.

The conduct centered around the firm’s dark-pool trading venue Sigma X, which has been working on improving its technology. The New York-based bank hired Raj Mahajan, the former head of high-frequency trader Allston Trading, in January to run its equities electronic execution business, which includes the dark pool.

“We’re pleased to have concluded this matter,” Tiffany Galvin, a spokeswoman for Goldman Sachs, said in an e-mailed statement. “We self-reported many of the issues to Finra, voluntarily took steps to fix those issues, and provided substantial assistance to the Finra staff conducting the investigation.”

Broker-Dealers and Bankers Bolster Use of Uber In Pre-IPO Lobbying

The current over-bubbly Silicon Valley “Unicorn” wave, which advances the notion of ‘stay private’ and eliminates the need to take a company public when there is an over-abundance of private equity cash available to prop up the so-called enterprise value, has led to a dearth of IPO deals and by extension, has crimped the wallets of brokerdealers and investment bankers who garnish big fees and commissions from the initial public offering process. Have no fear, to win over ride-sharing whale Uber in advance of their ultimate IPO, Bankers are pulling out the stops.

Wall Street bankers and broker-dealers are notorious for climbing over walls to win over whales in advance of the ultimate monetization event. In the case of Uber, the biggest Unicorn of them all, with a private market valuation of more than $50billion, JP Morgan, Goldman Sachs and other major investment banks have launched a pre-IPO lobbying campaign by banning the ubiquitous line-up of black car services esconsed outside  their palatial Wall Street homes, and instead, they are offering their brokers special compensation to embrace the use of Uber so as to win over the senior executives who will decide on this decade’s potentially biggest initial public offering mandate for investment bankers.

f7622be21d3caa14_rolls_eyes.xxxlargeIn a July 10  NYT story by Nathaniel Popper, which has been re-purposed by tens of dozens of media outlets, we give credit where credit is due and share the following excerpt from Popper’s column:

“..The latest reminder came this week when JPMorgan Chase announced that it would reimburse all of its employees for rides taken with Uber — offering access to “Uber’s expanding presence and seamless experience,” the company said in a news release.

JPMorgan made its decision long after other parts of corporate America were already hailing cars through the California start-up. But banks have recently shown a fondness for the service — with Goldman making the company part of its official travel policy in late May and Morgan Stanley putting out its own news release about its Uber use late last year.

Bank experts were quick to note that these moves come as the banks are jockeying to win a coveted spot managing Uber’s initial public offering — one that is not yet scheduled but that is assumed to be coming in the not-too-distant future. The I.P.O. for Uber, whose fund-raising so far has pegged its valuation at $50 billion, will most likely be the blockbuster I.P.O. in whatever year it takes place. provides a comprehensive global database of broker-dealers located in more than 30 countries across the free world.

A spokeswoman for JPMorgan said that the Uber news release this week had nothing to do with an I.P.O. and was instead part of the bank’s broader business relationship with the company. It does, though, fit squarely within a hallowed tradition of banks going to sometimes amusing lengths to secure a prized initial offering and the significant fees and reputational lift that it can provide.

“On the margin, sometimes the little incremental thing will make the difference,” said Lise Buyer, who advises start-ups looking at initial offerings. “Anything that a bank can do on the margin to improve their odds will probably be useful.”

The softer side of the sales pitch has taken on many forms over the years. When was going public, Ms. Buyer said that banks presented their pitch books to the company in the form of bound books, to celebrate Amazon’s book-selling roots. Other bankers have made humorous videos about the company they were proposing to bring to the stock market.

One of the most storied practitioners of the hard and soft sell of potential clients was the JPMorgan banker Jimmy Lee, who died unexpectedly last month.

Mr. Lee placed a G.M. car in the lobby of JPMorgan’s headquarters on Park Avenue when General Motors executives came in to consider whether to use the bank for the carmaker’s return to the public markets after the financial crisis. (JPMorgan participated.)

A few years later, Mr. Lee was in a custom-made Facebook hoodie — a sharp departure from his normal pinstripe suit — when Mark Zuckerberg visited JPMorgan before his company’s initial offering. (The bank took part in that one, too.)

These sorts of efforts have a well-grounded logic for the companies shopping for a bank. A banker taking a company public has to sell the shares of the company to investors — and thus needs to show an understanding of what the company does.

For the full story at the NY Times, click here

Any Grads Want to Join a BrokerDealer? These Banks Want You!


If you or your college grad who you just financed 4 years of college for has yet to secure that sought-after Wall Street job, profiles 9 different types of people that Goldman Sachs, J.P. Morgan and Morgan Stanley are looking to hire at this point in the year. Here is what said:

1. Goldman Sachs wants private wealth management and fund management professionals

2. Sachs wants technology professionals in Warsaw

3. Sachs wants derivatives clearing professionals in London and Warsaw

4. J.P. Morgan wants ‘client rationalization’ professionals in London

5. Morgan wants associates for its London investment banking team in London

Looking for a brokerdealer to submit your resume to?

Access the world’s largest database of broker-dealers Click Here.

6. J.P. Morgan wants someone to join a new team working on ‘VaR methodology’ in London

7.  Morgan Stanley wants a cyber intelligence analyst in Glasgow

8. Stanley wants over the counter collateral analysts in Glasgow

9. Morgan Stanley wants top university graduates for glorified data monitoring and presentation roles

If you’re interested in getting into contact with one of these broker dealers, click provides a global database of broker-dealers registered in the US as well as those performing brokerdealer services in upwards of 30 major countries throughout the world. -