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===The broker that didn’t bark in the night-time=== | ===The broker that didn’t bark in the night-time=== | ||
{{Quote|KING LEAR: Now, our joy, | |||
Although the last, not least; to whose young leverage <br> | |||
Thine holdings in thinly traffick’d names, rich in outrageous voguery, dry of <br> | |||
Bunch, distil, concentrate: conspire their margin lenders to o’er-extend;<br> | |||
How fared thy numbers, Sirrah? What can you say? <br> | |||
Will a grimace itself engrave upon that storied countenance? What did you lose? Speak. | |||
GOLDMAN: Nothing, my lord. | |||
KING LEAR Nothing? | |||
GOLDMAN: Nothing. | |||
KING LEAR: Nothing will come of nothing, fair squidly vampire: speak again. | |||
:—Shakespeare: ''Tiger King Lear'', I, iii}} | |||
What follows is heavily derivative and based on assumptions and extrapolations from a single footnote that may well be entirely mistaken. Nevertheless, I think it illustrates an interesting hypothetical point. | What follows is heavily derivative and based on assumptions and extrapolations from a single footnote that may well be entirely mistaken. Nevertheless, I think it illustrates an interesting hypothetical point. | ||
While other brokers shipped losses most conveniently measured in the ''billions'', one — [[Goldman]] — yes, ''that'' [[Goldman]] — reported “immaterial losses”. | While other brokers shipped losses most conveniently measured in the ''billions'', one — [[Goldman]] — yes, ''that'' [[Goldman]] — reported “immaterial losses”. | ||
Be assured, other brokers will be stamping their feet, cracking their cheeks, cursing obstreperous ill fortune | Be assured, other brokers will be stamping their feet, cracking their cheeks, cursing obstreperous ill fortune, beating their fists on the ground, beseeching whichever mischievous God looks after the fates of regulated broker-dealers and wailing “how in the name of all that is holy can it be that while I took a regular shellacking, that [[Goldman]] outfit got away with it, without so much as a crease in its trousers, ''again''?” | ||
“What kind of second sight, what extra-sensory perception, what compromising photos of the | “What kind of second sight, what extra-sensory perception, what gift, what kind of compromising photos of the Almighty must Goldman have to lead such a honeyed life? What does the [[Vampire Squid]] ''have'' over the Fates that other mortal dealers do not?” | ||
Perhaps it is as simple as this: ''Goldman didn’t have much risk on in the first place''. This may be prudent business selection; it may be that Goldman didn’t have much of a relationship with Archegos in the first place. According to a communication from CS’s credit risk team in April 2020, “Archegos had disclosed that its long positions with CS were “representative” of the positions Archegos held with its six other prime brokers at the time (namely Morgan Stanley, Jefferies, Nomura, Wells Fargo, Deutsche Bank, and UBS).” | Perhaps, I gingerly venture, ''nothing''? Perhaps it is as simple as this: ''Goldman didn’t have much risk on in the first place''. This may be prudent business selection; it may be that Goldman didn’t have much of a relationship with Archegos in the first place. According to a communication from CS’s credit risk team in April 2020, “Archegos had disclosed that its long positions with CS were “representative” of the positions Archegos held with its six other prime brokers at the time (namely Morgan Stanley, Jefferies, Nomura, Wells Fargo, Deutsche Bank, and UBS).” | ||
Notice anyone ''missing''? | Notice anyone ''missing''? | ||