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To: Richnorth who wrote (19890)	9/27/1998 1:43:00 PM
From: Alex	Respond to of 116815

Global turmoil: Goldman to postpone float Goldman Sachs, the US investment bank, will this week announce it is postponing its $US17 billion ($29 billion) float because of the turmoil in world financial markets. The firm's 190 partners are to meet today in a worldwide video conference to decide on the terms of the delay. The float, announced earlier this year, would have seen the partners receive shares worth more than $US84.7 million each. The partners include Mr Gavyn Davies, the firm's chief economist in Europe, who is a close confidant and unofficial adviser to Mr Gordon Brown, Britain's Chancellor of the Exchequer. Goldman Sachs is expected to announce early this week that it is postponing the float until market conditions are calmer and the world's stock markets recover from their slump. Some partners say that Goldman could pledge to remain a partnership, but most insist that the float will eventually go ahead. The firm has been forced to pull its float because profits have slumped in recent weeks and international investors are now unwilling to invest in a major investment bank. The firm had wanted to sell a minimum of 10 per cent of its shares for $US1.7 billion. Goldman last week announced a 19 per cent fall in earnings between June and August and said that its profits for the last months of the year would be sharply down. Since then, the firm's difficulties have worsened. It is one of the 14 banks and financial houses which have mounted a rescue operation to shore up Long-Term Capital Management, the vast hedge fund which almost collapsed owing more than $US170 billion. Goldman has invested more than $US170 million in the fund. This week's announcement that the float will be postponed will be in sharp contrast to the euphoria of last June when Goldman's partners met in New York and agreed to press ahead with a float. Mr Jon Corzine, Goldman's chairman, is expected to send a voicemail message to the firm's 11,000 employees on Tuesday, explaining the reasons for the delay and reassuring them that Goldman's finances are still robust and that it will continue to press ahead with a float sometime later. This December, 30 senior Goldman executives were expecting to be promoted to partnership status, which gives them the right to share in the firm's wealthy partnership fund. Goldman will now have to decide whether to go ahead with the promotions or delay them, because the partnerships are to be scrapped after the float. - The Sunday Telegraph, London smh.com.au