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Consulting|Technology|International business

Buffett swoops down with $5 billion capital infusion into Goldman Sachs

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http://www2.goldmansachs.com/our-firm/investors/financials/current/annual-reports/entire-2007-annual-report.pdf

This was expected. Goldman Sachs (NYSE: GS), an exceptionally run institution could not beat the heat of Wall Street and lately its stock was also hammered down by investors. They converted themselves to a bank a couple of days ago and this immediately meant the ‘smartest man in any room’ – the legendary Warren Buffett and my guru  swoop down and make a minimum $ 5 billion dollars in preferential stock and an option to purchase another $ 5 billion at a later date.

Goldman has been an extremely well managed institution but it could not stop itself from getting caught in the Wall Street mayhem and had to get itself converted to a bank to have access to liquidity (aka the likes of Citigroup (NYSE: C) or JPMorgan Chase & Co. (NYSE: JPM).

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