GS internal Voice Message from CEO

bbstep

CEO left VM to each employee today and it said: more detail of issuing 5 Billions shares will be announced tomorrow but the fundamental reason for that is its T1 ratio will be below FED requirement if GS pays back 10B TARP money.

In a short, if GS T1 ratio is close to the min requirement from Fed and it decides to raise capital, all it means market will continue volatile and GS has high leverage rate which itself even not feels comfortable. If market goes south a lot, their T1 ratio may be lower than Fed requirement.

Watch out...

buctusa

thank you for such valuable information............

bushbreeze

GS leverage heavily recently to push the market  high with program trading, if the market goes south, it suffers a lot. But, it can dump since so many people can not wait to jump into now

牛熊

What's the impact for its share price?

n748

really. I can't believe it. What was the situation when its stock was valued at 50-? Was that what GOV and those guys wanted to hide from public.

I see a black hole there, since even the strongest GS is in such a bad situation.