Tuesday, July 14, 2009

Goldman Sachs executives sold $700 mln of stock - FT

FT reports executives at GS sold almost $700 mln worth of stock following the collapse of Lehman Brothers last September, according to filings with the SEC. Most of the sales occurred during the period in which the investment bank enjoyed the support of $10 bln from the troubled asset relief program. The surge in selling among Goldman partners, at a time when the US government had thrown a lifeline to Wall Street, is likely to draw criticism from lawmakers on Capitol Hill. For the eight-month period for which figures are available, Goldman partners sold more than $691 mln in company stock, even as the co expanded its public float from 395 mln to 503 mln shares in several capital raises. For the comparable period between September 2007 and April 2008, when the average share price was substantially higher, Goldman partners sold about $438 mln in stock. A spokesman declined to comment on the sales, other than to note that Goldman partners receive a big share of annual bonuses in stock, and that for many, stock sales are an effort to diversify their holdings. Some of the sales could have been motivated by margin calls, which are said to have afflicted a number of Goldman executives who used company stock as collateral for loans.

makes you wonder

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