it was originally funded by goldman sachs commercial paper and now they came back to goldman for a $5 million loan. but henry had different ideas for car he recommended selling shares on the open market making it the first publicly owned retail operation in existence. mounting a $10 million profit turning goldman sachs and seers into a household name. during the next 11 years old men and lehman -- goldman and even brothers were companies but what would excite them most was the studebaker which rican the first automobile manufacturer owned by the public with the overline bankers became the hot issues everybody wanted between the two brothers in lot to deteriorate and to spread amongst their families they came to a head in 1914 when war broke out in europe said the these horror sabbatical a pro ally although henry who had admired the culture thought otherwise and spoke vehemently against the british and french who he felt which he felt to maintain net commercial supremacy in hearing the bylaws goldman sachs refrained from purchase abating is in the anglo-french bond drive one of only tw

of henry goldman. if you were expecting to hear a see all, tell tell-all about how goldman sachs makes all that money and until recently appeared to keep its hands clean, i am afraid you will be disappointed. maya book, "when money was in fashion," which i have somewhere here, was recently published by palgrave macmillan. it is a biography and memoirs my grandfather who was the son of the founder, marcus, and a farmer from the chinese village in bavaria who came to the states in and the great immigration wave of 1848. henry goldman and revolutionize the financial world by developing a modern method of financing for congress and industry which today is known as the ipo. in a day when there were no pcs, no internet, no e-mail or even adding machines, when business was developed solely with talent, imagination and brains, he became america's first investment banker. and yet he guarded his private life so jealously that he remained remained an enigma to the thousands of people whose lives he influenced and

goldman sachs led the way. fourth quarter profits were a little more than half what they were a year ago. investment banking and trading revenue fell. looking closer, goldman saw fixed-income, currency and commodity trading revenues plunge 48%. marketing making revenues were down 43%. market making is when goldman trades on behalf of its clients. principal transactions, or when goldman was trading its own money, those revenues were up 50% in the fourth quarter last year. goldman sachs stock shed almost 5%. volume was three times its normal pace. after the drop from its april high, down to the july low, shares have been trending higher since july. tonight it is at a one-month low. wells fargo stock also was hit by selling, losing 2%. it also saw a pop in volume. last week, it was making a run after its springtime highs. wasn't able to make it. earnings came in as expected. its mortgage business was up, but new banking rules limiting fees cut into revenues. still, profits and revenue hit new records thanks to the

now we have to ask if goldman sachs and facebook are making a mockery of the securities and exchange commission that's a many are arguing after news broke that goldman sachs has set up a special purpose vehicle to allow their wealthy clients to invest in facebook now as part of the deal goldman sachs a reportedly invest four hundred fifty million dollars in facebook digital sky will invest fifty million and goldman is expecting to raise as much as one point five billion with a b. from investors this is despite the fact that facebook is not a publicly traded company and that's why the trick comes that you see the f.c.c. requires companies with more than four hundred ninety nine investors to disclose their financial results to the public but because goldman is managing those investments they would be considered just one single investor even though they could be pulling the investments from thousands of clients clients to our goldman facebook having their cake and eating it too well joining me from our studio in new york to discuss it is joe wise involved deputy editor of business insid

so basically to cover their ass goldman is now going to limit the offering to non-u.s. offshore investors to skirt around the law and goldman says that this was their decision not facebook's on the wall street journal has reported that about seven billion dollars in orders for facebook shares have already poured in with the chinese demand especially strong so will this deal to limit u.s. investors actually hurt mark zuckerberg social networking site that has nearly six hundred million members worldwide i guess only time will tell but all of to say is that this is certainly not how goldman planned for the deal to turn out in fact it's quite the embarrassment for that and many are now wondering if goldman's relationship with facebook might suffer if it could lead facebook to find a new company to help sell shares on the social networking site begin selling them to the public in two thousand and twelve so poor goldman sachs another screw up by wall street but haven't we the american taxpayers seen this script before i just love i think my favorite part is that they tried t

andrew, what dogs goldman see in makes it worth that much money? >> i think there's two stories here. one is this valuation of facebook at $50 billion. you say why? why $50 billion? that sounds like a lot of money. on a relative basis, something like a google which, as you just said, facebook has just surpassed in terms of use, google is worth close to $200 billion. they're all trying to get at the advertising market, targeted advertising, being able to really be able to advertise directly to you by knowing as much information about you. that's what facebook perhaps even more so than google is able to bring the advertiser. the second component.... >> suarez: i'm sorry. go ahead. >> the second big headline here there is goldman sachs. why is goldman sachs, a wall street investment firm, doing this? and it is as much a financial investment for them as it is an opportunity to get on the ground floor of a possible facebook ipo in the future. this is a private sale early. it's an opportunity for them to give their high net worth clients access to these

sachs is been pretty much goldman sachs but i must say. any investors who are upset because they couldn't get into the i.p.o. should count their blessings you know they were done a favor do is just run a numbers an i.p.o. and it was outrageously priced let's talk about those numbers are talking about a fifty billion dollars valuation how do they get to that number and why is it overvalued it's hard to tell how they got to that number because there's no disclosure at least to the level of a public company because facebook is a private company but the numbers that was floating around for revenue is about two billion dollars if you use our operating margin. comparables who facebook's potential peer group that means they're putting in roughly half in profits they give them an outrageous price earnings in a few surprise or earnings growth ratio. facebook would have to register effectively the entire world the entire population of computer using individuals to justify their favorite today for discounted back to the present. that is. effectively

sachs and i want to know why it is you're starting with goldman sachs and why just twelve point nine billion dollars why not go for all of that because we've got to start somewhere and i want to see. very specific right because we know this twelve point nine billion dollars was a side bet and we know they should they got paid on it and they said they didn't need it ok and they had rigged to explode so it's the perfect place to start now what i love the whole whole hundred eighty two billion dollars back absolutely what i love to do some protests are goldman yes but this is a good place to start because tim geithner and hank paulson and ben bernanke they were the ones who made the decision to give the money away in the first place you think they're going to listen. not not today but one day yes one day i believe i believe ok now i got to ask you this because you know the idea that signing that could bring down the economy seems always so simple but is it really that simple anything that's a really hot fire. in combination with the root cause absolutely the root cause was the the trigg

but the document does not say much about how goldman's day-to- day business will change. and judging by the small drop in the stock price today, the new transparency doesn't seem to make much difference to investors. >> unless you see the analysts increase their e.p.s. and price target over the next couple of days, this really doesn't look to be a material value-creating report for the company and material organizational changes. >> reporter: the recommendations kick in a week from wednesday, when the bank releases fourth quarter earnings don't expect similar changes at rival firms. >> goldman sachs was definitely the target of increased scrutiny over the last couple of years. the other large banks may be able to skate by without having to improve their disclosures. >> reporter: the report is noteworthy not just for it's words, but for its humble tone. it's part of what the company calls a "big soul search" in the wake of criticism for a culture of arrogance and secrecy. erika miller, "nightly business report," new york. >> tom: here's what we're watching for tomorrow: we

the number is pious guy again it's probable but if i was a high net worth client of goldman sachs would i put my two to five million dollars in it absolutely not tell us about the state of foreclosure crisis you're right that the banks are now walking away from the foreclosures what's going on there reggie. starting on the fringes with low of a properties but there are cases in chicago where banks are actually. banding properties properties i warned of this last year and when i did one of it a lot of. so-called experts were putting the idea of basically saying that there is no. is a very slim chance of economic situation where a bank would turn down any recovery that's assuming that there is a recovery to turn down there are several situations where the bait simply comes out in the negative if they took to go after the property. i don't know if it's that simple because the bay could potentially still be on the hook with the municipality for back taxes fines etc but as it is starting on the fringes and i believe it's going to work its way up towards the core and the mainstream of loans i

this psychological profile of jamie dimon lloyd blankfein goldman sachs j.p. morgan this guy daily is that of the arsonist the arsonist likes to burn things down their pyromaniacs here on wall street you've got debt maniacs they like to destroy things with debt and they like the price of debt to be as cheap as a pack of matches. if the price of dead is as cheap as a pack of matches as it is now they can continue to burn things down to destroy the economy like they are doing at this very moment and what is the obama administration doing they are giving the pyromaniacs and the arsonists more starting fluid more lighter fluid more matches whatever they need to destroy the economy so you have to ask a question is obama in the pocket of the financial terrorist yes he says no no i mean get it through your thick skull it's a clip talk or see he's just part of the kleptocracy who you talk about arsonists here's a headline from the u.k. the other half of or the other pretty ten percent of the global financial terrorist class bankers will take bonuses because they weren

but goldman sachs said one of the law doesn't apply to us you know the laws for the small people we don't we don't we don't you know if the law is something that gets in the way of us raping people we just change the law i mean they don't they're above the law member blankfein said he's doing god's work so god doesn't obey the law another point is made by simon johnson who in a piece called why are taxpayers subsidizing facebook and the next bubble he says that goldman sachs remember it was made by hank paulson into a bank holding company so they're able to borrow at the fed from the fed at zero percent and yet they're engaged obviously in very risky investments as if they are hedge fund own oil exactly under the volcker rule remember the whole point was to shut down the proprietary trading desk because they're taking huge short term risks that were under written by the u.s. public who had to bail them out so the bypass that volcker rule restriction they've gotten into the pre i.p.o. market which doesn't even exist they invented it on the spot there's no even regulations that cover it and

bankers like goldman sachs and j.p. morgan will always pay zero percent these people on the bottom who are suffering the inflation will continue to pay sixteen percent twenty percent eighty percent more every single month every single quarter for their rent and mortgage slowly and we also see you know inflation and this sovereign debt issue in the final headline here max jeff rubin peak oil means massive sovereign defaults so this is jeff rubin and he's a legendary oil analyst apparently and he says that it takes huge amounts of energy particularly oil to achieve the growth rates at all the near bankrupt governments around the world need to even service their debt let her own repay it so the minute global industrial production recovered from the recession or oil prices were suddenly on the verge of triple digits that's not an accident since the two go hand in hand global oil demand is up two point five million barrels per day from last year and a further increases in oil demand and oil prices will be trading comfortably

action and dead dogs that they stuff into a concoction of some sort of securitized product yet won't goldman sachs collateralized debt obligation most of it is cat extreme it and dogs this is what they're finding the federal reserve bank's balance sheet in washington the reason why they're afraid of doing all of it at the request of ron paul is because they know that they've got basically dead beatles eye of newt some old chicken bones some dead cat excrement that's about all they got of the federal reserve because the us is technically. grow up and solve so these witches are fighting fire with fire yeah they're fighting with dog poop. so you mention the collateralized debt obligations backed by the subprime mortgages in the us. here's a headline for you foreclosures may be undone by state ruling on mortgage transfer this sounds like good news doesn't it this is the massachusetts highest court is poised to rule on whether foreclosures in the state should be undone because of the securitization industry practices at issue is whether a mortgage can be transferred without naming the reception a

sachs facebook tale goldman sachs violated securities laws by over. over over shares relative to the state laws and financial times simply said well there's nothing magical about that number well that's all i guess there's nothing magical about the whole concept of rule of law either now you say that the response to the financial crisis is a crisis of democracy what it was i mean exactly what it means to me is i don't know how it was in the states but here when the crisis got going properly say two thousand and eight there was never a moment when there was an open debate when people said well what are the possible responses to this should we be bailing out insolvent banks is it really a liquidity crisis or is it in fact a crisis of solve it see there was no debate we simply had a long chorus of one expert politician aided and abetted by a supine press all saying exactly the same thing there's no way it will turn it if it's a crisis of liquidity we must bail out the banks and there was no discussion no point . was a discussion opened the people could h

goldman sachs reports a big drop in profit. that will not stop it from paying out billions in bonuses. in the midst of a carefully choreographed visit, the unpredictability of a press conference has turned up a surprising admission from the chinese president. standing alongside president obama, he then acknowledged that a lot still needs to be done for human rights in his country. mr. obama said china had come a long way on the issue but he would continue to be candid. they spoke about trade and currency. adam brooks reports. >> to presidents. together they preside over a quarter of the world's population, one-third of its economy. they differ profoundly in their philosophies but they covet each other's wealth and markets. >> we have an enormous stake in each other's success. in an interconnected world, in a global economy, nations, including our own will be more prosperous and more secure when we work together. >> they need each other, but do they trust each other? they spent the morning in talks. mr. obama told mr. hu that th

impair the way goldman does business. meanwhile, ibm's impressive earnings helped minimize the damage on the dow. before the bell today we'll find out what effect morgan stanley's report has on today's trade. keep an eye on google's earnings after the bell. ahead of its earnings report next week, american express warned its fourth-quarter profit will miss estimates. while at the same time announcing it will slash 550 jobs. housing starts fell to their lowest level in a year, sending dr horton and henard down 3%. american airline parent amr says it lost less money than last quarter but shares still sank 7%. this morning's "wall street journal" reports the nation's number three fast food chain is planning to sell arby's in order to beef up its expansion of its wendy's chain. keep an eye on ebay after the bell yesterday, the on-line auction site reported healthy holiday sales. and finally, pricey homes may be a tough sell here. but across the pond, a new complex in london is already 60% sold. the ultralux units with priceles

citigroup missed earnings predictions while goldman sachs came in ahead. wells fargo matched estimates. general electric, the parent company of the company that produces this program came in ahead of analysts estimates. it was also announced that ceo jeffrey immelt will chair president obama's new economic advisory panel. >>> jon corzine occupies a unique perch from which to view the country and the economy. he joined a legendary wall street firm, served as senator and is current ceo of mf global. good to have you on the program. >> good to be here. >> thanks for joining us today. president obama's meeting with chinese president hu and the american business leaders. are these meetings in your view largely ceremonial meetings with greater opportunities or are we actually getting things done? >> i think the culmination of a lot of hard work that prepares readers for more ceremonial conclusion of the work that is ongoing. but they're absolutely necessary. the fact is that china's economy is a driving force across the globe. it is a rising force in geopolitic

but on the trading floor at goldman sachs, i was -- i slammed phones and was egocentric. still wasn't a role model. so, we evolve. >> reporter: gordon has long wanted to atone for the sins of wall street. to share the secrets that no one seems to want to tell the little guy. the guy who is just trying to build that nest egg, to have enough money to pay the kid's college education and maybe retirement. so, where did wall street go wrong? >> wall street went wrong -- i think there's a confluence of things. but in the late '70s, illegal an unethical were the same. your word was your bond. the client comes first. those expressions started to be replaced, as you know, by liars and loans. we can hide debt. >> reporter: greed is good. >> greed is good. >> reporter: when we met him last night, gordon was living on borrowed time. this might be your last interview on camera. raises the takes. >> so you better be kind to me. >> reporter: i will do my best. >> reporter: six months ago, his doctors diagnosed him with a malignant brain tumor. gordon's second. he decided to forego any t

million users worldwide, and is now valued at $50 billion, following a $450 million investment from goldman sachs. the story of facebook was dramatized in one of this year's most highly regarded films, the social network. here is a look. >> that looks good, that looks really good, clean and simple,. >> relationships. this is what drives life in college r you having sex or aren't you? it is why people take certain classes and sit where they sit and do wt they do andav some center, that' what the facebook is going to be about, people are going to log on because after all the cake and watermelon there is a chance that may get lid and meet a girl, that is really good. >> and that's it. >> what do you mean? >> it is ready. it is? right now? >> yes. you have no idea what this is going to mean to my father. >> sure i do. >> facebook founder and ceo mark sucker burgh recently appeared on 60 minutes where he discussed the future of future networking .. when i was getting started with my roommates in college, you never think that you can build this company or anything like that, because i mean we wer