SCHANDENFREUDE

Not nice I know but sometimes you simply have to give in.

Goldman Sachs showed up at the bottom of the fixed income list today.  It's pretty clear they misjudged the--at least short term--the direction and disposition of the business much to the benefit of the Two Morgans and Citi.  Happens in the best of families.  Wholesale distress at Goldie; firings, departures, finger pointing, etc.  And, according to sources close to the situation who spoke under conditions of confidentiality, a movement for a charm offensive with their best clients.

Many years ago, we shared a client with Goldman.  Big name, big money.  Goldman put forward a very, very complex financing/risk management program.  It made sense to the client who showed it to us but didn't try to shop it.  Good client.  They engaged Goldman but not before having a conversation that sort of went like this:


"Look, we're going to do this but I know you're screwing us. It's not going to make a difference...we're going to do it with you.  But you have to tell us how you're screwing us because we can't figure it it out."


Goldie did and did the deal.  Years later, one can't help but smile.  They were goooooood.