BR: "How to Puff Up Earnings, Goldman Sachs Style"
Barry Ritholtz writes:
Leave it to the clever boys at Goldman Sachs to turn dross into gold: They have come up with a way to hide massive losses so clever, it requires special comment: The Orphan Month.
Yesterday, we noted that the bulk of their profits had come from AIG transfer payments - the theft from taxpayers AIG 100% payouts funded via bailout monies that saw Goldie as one of the largest recipients. Floyd Norris notes that most of the AIG effect was in December. “For the first quarter, the total A.I.G. effect on earnings was, in round numbers, zero.”
How is it possible that this occurred?
...In a word, Orphaned:
Floyd Norris: The Case of the Missing Month
Leave it to the clever boys at Goldman Sachs to turn dross into gold: They have come up with a way to hide massive losses so clever, it requires special comment: The Orphan Month.
Yesterday, we noted that the bulk of their profits had come from AIG transfer payments - the theft from taxpayers AIG 100% payouts funded via bailout monies that saw Goldie as one of the largest recipients. Floyd Norris notes that most of the AIG effect was in December. “For the first quarter, the total A.I.G. effect on earnings was, in round numbers, zero.”
How is it possible that this occurred?
...In a word, Orphaned:
Floyd Norris: The Case of the Missing Month