"Pilson, if I'm not mistaken, the entire Wall Street, including Goldman Sachs, is or is preparing to lay off employees on a large scale, right?"

Jiang Hui did not refute Pilsen's belief that the subprime mortgage crisis would not have an impact beyond the Great Depression of 1929, which is often a matter where facts speak louder than words, and no amount of saliva is wasted now.

"Jiang, who did you listen to?"

Jiang Hui's seemingly ordinary words aroused Pilsen's high vigilance. As the president of Goldman Sachs Island Country Branch, Pilsen also has a relatively high status within Goldman Sachs and belongs to a group of top partners.

As a leading international investment bank, Goldman Sachs provides a wide range of investment, advisory and financial services to the global financial markets. Although in August 1998, the Goldman Sachs Partners' Meeting resolved to restructure Goldman Sachs into a company limited by shares, thus ending the history of partnership investment banks, the Goldman Sachs partnership system played a crucial role in its development.

A partnership company is an organizational form in which two or more partners own the company and share the company's profits, and the partners are the owners or shareholders of the company. Its main features are: the partners share the income from the operation of the enterprise and jointly bear unlimited liability for the operating losses; it can be operated by all partners or by some partners, and the other partners only contribute capital and bear their own profits and losses. Partnerships in U.S. law fall into two broad categories: general partnerships and limited liability partnerships.

A general partnership consists entirely of general partners, each of whom is jointly and severally liable for the debts of the partnership, and a limited liability partnership, which consists of a general partner and a limited partner. A general partner is jointly and severally liable for partnership debts, while a limited partner usually has limited liability for partnership debts and is jointly and severally liable for partnership debts in exceptional circumstances.

Since the 90s of the last century, the headquarters of the "85" building on Wall Street, which is famous at Goldman Sachs, has been the most diligent place for investment banking elites, and being a partner of Goldman Sachs means having countless wealth.

Goldman Sachs' punishment and incentive mechanism for partners is very clear, and senior executives generally have a strong sense of risk and responsibility. This has also formed Goldman Sachs' unique culture of pursuing long-term value and ambition. Goldman Sachs became the bank of choice for aspiring bankers, and working here was a status symbol.

As the head of the island company, Pilson also has a very high status among the partners of Goldman Sachs, and naturally, he is also well aware of the company's upcoming layoff plan.

At such a time when the large-scale layoff plan is about to be announced, it is difficult for people not to question where Jiang Hui's news came from when he heard about the layoffs at Goldman Sachs.

You must know that Goldman Sachs' layoff plan was only brewing among the top management, and was not announced to ordinary employees. And now the whole Wall Street is a bit of a rumor, and everyone is trying to reduce the impact of layoffs on the market as much as possible.

"Pilson, you don't need to hear anyone about this, you can guess it. Although the U.S. Treasury Department and the Federal Reserve have introduced various measures to reduce the impact of the subprime mortgage crisis, this crisis is not something that these measures can stop at all.

Throughout the first quarter of 2008, Wall Street and even the U.S. government were desperately trying to extinguish the fire, but the effect did not seem to be very good.

Not only did it not work well, but it seemed that the situation was getting worse.

"Although other financial institutions are indeed experiencing all kinds of problems, we at Goldman Sachs are still profitable. ”

Wall Street symbolizes the financial center of the United States and even the financial center of the world, and the financial companies on Wall Street are the meaning of the existence of this street, the soul of the entire American economy, Citigroup, Lehman, Merrill Lynch and Goldman Sachs, each name will become a seal of American history, with the process of global economic integration, the fall of this prosperous street affects not only the United States, but also the lifeblood of the global economy.

While Wall Street's investment giants scramble to count losses from the subprime mortgage crisis, Goldman Sachs Chairman and CEO Lloyd Brankfin is smiling.

Goldman Sachs, the largest investment bank in the United States, officially announced at a recent shareholder meeting that it would give CEO Blankfin a "super red envelope" of about $100 million to reward him for his outstanding contributions to the subprime mortgage crisis. As a result, he became one of the most one-time corporate executives in Wall Street history.

In the reward plan announced by Goldman Sachs, Blankfin's huge "red envelopes" include: $53.97 million in cash, $45.76 million worth of stocks and options. That's well over his base salary of $600,000. That adds up to nearly $100 million in revenue last year. This is nearly double his own income in 2006 and a new record for Wall Street investment banks.

In the past 2007, Goldman Sachs has weathered out the subprime loan crisis that swept Europe and the United States, and Blankfin is undoubtedly the biggest contributor to it.

Before the subprime crisis broke out in full swing, Blankfin and his team realized that the future was still buying subprime loans, and Goldman Sachs shorted subprime assets aggressively.

By the end of 2007, Goldman Sachs had made a profit of $4 billion from shorting subprime loans. This move not only successfully dodged the subprime mortgage crisis, but also enabled Goldman Sachs to record outstanding results far exceeding those of competitors such as Citigroup and Merrill Lynch.

So Pilson is not wrong when he says "we are still making a profit at Goldman Sachs".

You know, at the same time, the flower bank, Lehman, that was so bad that even the underwear was gone.

"Yes, I also admire Goldman Sachs for being able to realize the impact of the subprime mortgage crisis at an early stage, so that it can plan ahead of time, not only avoiding losses, but also making an extra profit. However, because Goldman Sachs is well aware of the impact of the subprime mortgage crisis, I think you should better understand that this crisis has just begun, and it is too early to celebrate the victory. ”

Jiang Hui took a sip of coffee, looked at Pilsen with a smile and said.

Goldman Sachs will be willing to sell Sanyo's shares, in addition to Sanyo's performance in recent years, the more important factor is that Goldman Sachs realized that the subprime mortgage crisis will be more violent.

Winning at the beginning does not necessarily mean that you are the ultimate winner, so you start to shrink your global business and sell off some unimportant assets to get more cash to deal with all kinds of risks that may come with it.

In a crisis, cash is king.

This is not for nothing.

(End of chapter)