Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (8156)	10/15/2002 10:07:02 PM
From: pbull	Read Replies (5) \| Respond to of 89467

Fair enough. I'm not wild about this market either, but it wouldn't take much to beat a 1% money-market return. Bonds are a joke, and we've already had the worst bear since the '30s. Gold is manipulated, as is everything else in this world. I've learned to live with it. Best of luck. PB

To: orkrious who wrote (8156)	10/16/2002 1:01:08 PM
From: stockman_scott	Respond to of 89467

Goldman Wanted Grubman - Knew he ignored Chinese Walls / NY Post DOUBLE-TALK HANK By JESSICA SOMMAR -------------------------------------------------------------------------------- HANK PAULSON - Bloomberg News October 16, 2002 -- Goldman Sachs once offered a lot of money to hire now-disgraced telecom star analyst Jack Grubman - despite evidence discovered by Goldman that Grubman's integrity was questionable, The Post has learned. A draft memo by lawmakers investigating Goldman's possible conflicts of interest appears to show that when Goldman was courting Grubman - who worked at Citigroup's rival Salomon Smith Barney investment bank - the hiring committee found two potential concerns: that Grubman "is not a research analyst but an investment banker" and that he "constantly will ignore the Chinese Wall." The draft memo was by House Financial Services Committee chairman Rep. Richard Baker (R-La.). Despite that knowledge, the memo says, internal documents dubbed Project JBG, for Jack Benjamin Grubman, show Goldman pressed ahead with recruiting the then-shining star of telecom research analysts in 1998 - and made Grubman an offer. Goldman made the offer because, the internal documents say, Grubman could bring an additional "$100-$150 million in investment banking fees annually," according to the memo. The content of the House draft memo, obtained by The Post, was confirmed by Baker's staff. The final version - with the above statements omitted - was released Oct. 10 to the press. "This evidence provides a window into the mindset of Goldman," said Christopher Bebel, former consultant to the Justice Department and securities partner at Shepherd Smith & Bebel. "The fact that Goldman would continue to pursue Grubman even though it was aware that he constantly co-mingled investment banking and research functions tends to shows that Goldman trusted Grubman would mesh well with its own culture." But Goldman had been spouting shock and dismay at even being including in the multiple probes of Wall Street's brightest firms. Meanwhile, Goldman Chairman Henry Paulson has been talking publicly about how Wall Street can restore investor confidence. It seems that Goldman only escaped the troubles Grubman brought on the nation's biggest bank - Citigroup - because it was outbid, not because of its ethics, a source close to the probes sniffed. Goldman offered Grubman $8 million his first year, plus $29 million in stock after Goldman's initial public offering, the memo said internal documents showed. Salomon countered with a $15 million "retention bonus," and Grubman stayed. "Not only did Goldman want to hire him, but that was the operating procedure at Goldman," a source close to the probe added. "Can't we reasonably expect that that was what they demanded of their analysts already at the firm?" During the time of the Grubman courtship, Jon Corzine, now a U.S. senator (D-N.J.), and Paulson were co-chairman of the firm. "I think it's clear that at the end of the day, Goldman Sachs did not hire Jack Grubman, and that's a decision that should speak for itself," said Goldman spokeswoman Kathleen Baum in defense. Goldman's findings in 1998 mirror charges recently leveled against Grubman and his assistant, Christine Gochuico, by the National Association of Securities Dealers. In a suit filed this month, the NASD claimed Grubman touted Winstar Communications with Salomon's highest rating to insure Salomon would earn high fees from the now-bankrupt telecom. Grubman and his assistant have denied the charges. nypost.com