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Banking

Goldman Execs Going Broke

Goldman Sachs has, for the most part, weathered the financial storm, but some employees aren’t doing as well as their institution: According to Charlie Gasparino at CNBC, Goldman has begun making margins calls on its partners and discovered that many of them leveraged their stock options to buy into hedge fund and private equity that has since gone underwater. Now these employees are being forced to borrow millions of dollars just to meet their own banks’ margin calls. Gasparino writes, “Sources at Goldman told CNBC that the borrowing is not a widespread phenomenon. It affects a "few" partners, sources say. But it is significant enough that the firm is arranging for its own financial advising firm to help facilitate borrowing for partners that need the money.”

February 18, 2009 10:21 AM