New York City (Ucs Financial News) Once again Goldman Sachs has stunned analysts. Just weeks after announcing record profits and record bonus payouts, the unstoppable Goldman Sachs has set it sights on the state of California.
According to industry insiders Goldman Sachs has been quietly gathering up California’s state and the municipal bonds of its major cities. A search of trading reveals that Goldman Sachs now owns or controls bonds worth and estimated 285 billion dollars. Over 100 billion dollars of debit from the cities of Los Angeles, San Diego and San Francisco.
“It’s an aggressive plan, but the numbers all up.” said former Goldman Sachs Chairman Henry Paulson. “Once Goldman Sachs seizes control and sweeps away the states paralyzing government bureaucracy, they should make a healthy 26% yearly return.” With that rate of return a hugely profitable IPO should be possible within 2 to 3 years. said Paulson.
Others think Goldman Sachs is taking an incredible risk. Former Governor of California Gray Davis explained the potential pitfalls. “Despite the strong steady flow of tax revenue and the upside of the depressed housing market there and many liabilities. A tax payers revolt, a major fire season or even a minor earth quake could wipe out any Goldman profits in a blink of an eye. Without AIG to under right the bond insurance Goldman Sachs will may not have an effective hedge should thinks go wrong in the golden state. ” said Davis.