Goldman partners get margin calls

| 18 February 2009 15:27

This comes from Rueters

Goldman Sachs Group Inc said several partners must cover margin calls triggered by the depressed value of Goldman stock and many of the firm’s hedge funds, but the bank denied it is lending money to its executives.

“Partners can, and many do, have margin accounts at the firm,” Goldman spokesman Lucas van Praag told Reuters on Wednesday. “To the extent that a margin call is triggered, they, just like anyone else, will receive a margin call. If the call isn’t met, the firm will sell stock to cover the shortfall.”

Van Praag denied that Goldman was extending loans to executives.

“Sarbanes-Oxley specifically precludes firms from lending or facilitating lending to an executive officer,” he said. “We do not provide partners with loans to cover margin calls.”

Source
Goldman says partners hit by margin calls – Reuters

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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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