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Has Goldman Sachs ever missed an interest payment or otherwise failed to met a financial obligation? I'd give Goldman a pass. They really are the best at what
by steveplace 17y ago
Has Goldman Sachs ever missed an interest payment or otherwise failed to met a financial obligation?
I'd give Goldman a pass. They really are the best at what they do.
But if we expand it further to the rest of the financial industry, what can we see?
Back in November, 33 companies skipped their TARP payments.
Just recently, Blackrock walked away from a Manhattan building as they couldn't refinance the debt.
And that's the problem-- banks and homeowners get into financial, not moral contracts. If the loss off default is smaller than the loss of staying in the contract, you stop paying. Companies do it all the time, and homeowners should view it as an out.
- yummyfajitas 17y ago"...any homeowner who can afford his mortgage payment but chooses to walk away..." "Just recently, Blackrock walked away from a Manhattan building as they couldn't refinance the debt." Were the companies which skipped their TARP payments capable of paying? There is a difference between being unable and unwilling to pay.
- timmaah 17y ago"As of 30 September 2009, BlackRock's assets under management totaled US$3.2 trillion across equity, fixed income, cash management, alternative investment and real estate strategies" Sounds like unwilling to me. Just because they couldn't refinance that debt doesn't mean they are unable to pay it.
- yummyfajitas 17y agoI'm not sure why you believe Blackrock can divert assets from one use to another. For instance, if Blackrock manages two pension funds (e.g., Target Retirement 2050 and 2040), they can't raid TR2050 to pay for obligations owed by TR2040.