Goldman Sachs and another financial scandal story for U.S. history.
Subj: Charles Peabody - Executive Life Revisited
Date: 8/14/99 0:49:29 AM EST
From: LePatron@LeMetropoleCafe.com
To: dougak
Charles Peabody has served commentary at the
Hemingway Table entitled, "Executive Life Revisited."
Charles Peabody's commentary is the most significant we have ever
put up at the Cafe and has the most astonishing of implications.
There is no doubt in my mind that it will lead to one of
the great financial scandal stories in U.S. history.
"Yesterday, General American Life Insurance Co. announced that
it was facing material withdrawals by institutional investors
and that it was temporarily unable to meet such demands"
"This discovery process should expose the seedier side of the
derivatives market, as well as the complicitous nature of Wall
Street in enabling the greed and deception to bloom unabated"
"The major underwriters of securities for this insurance operation
include ..., Goldman Sachs and ... These firms may prove to be
complicitous in the creation of the firm's current problems"
"The closed nature of St. Louis high society will also ...
... during the discovery process"
"I believe that, as the discovery process unfolds,
the city and county of San Francisco could be ..."
lemetropolecafe.com
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All the best, Bill Murphy, Le Patron
Yesterday, General American Life Insurance Co. announced that it was
facing material withdrawals by institutional investors and that it was
temporarily unable to meet such demands. Despite this shocking news of a
potential default, the marketplace rallied the financial stocks
strongly. And today the rally continues as old rumors of further
financial services consolidation surface...
... I believe their benign approach to this company's
budding problems was conflicted by the plans for this company to convert
from a mutual holding company into a publicly traded stock company. In
other words, no one wanted to lose out on the possibility of lucrative
equity underwriting fees. It was only (coincidentally?) after the...
The closed nature of St. Louis high society will also be exposed
during the discovery process. I say this because of the interlocking...
Finally, this story, when the final chapter is written, could show
that some of the most respected firms ... were
all scrambling to set up joint ventures or other business partnerships
with this company in an effort to generate incremental revenues in the
investment management process.
Of course, the primary issue at hand is that the recent rise in interest
rates is starting to expose its first victims. While most will describe
this problem as a short term liquidity issue, one has to watch carefully
as to whether or not it will become an issue of default. It is my belief
that the current liquidity/interest rate problems will transition into a
more general problem of credit quality over the next ...
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