Money Pictures from the Floating World
posted by September 29 at 13:15 PMon
About Henry Paulson’s tax loophole (from a 2006 story in Forbes):
The Goldman Sachs boss will see his annual paycheck shrink from last year’s $38 million to a paltry $183,500 once he takes over the job of Treasury secretary.
But don’t shed too many tears for Paulson. He has amassed quite a fortune—a roughly $700 million equity stake in Wall Street’s premier investment banking house. And soon, he will have the chance to diversify a good chunk of those holdings without paying a dime to the Internal Revenue Service.
By accepting the Treasury post, Paulson is poised to take advantage of a tax loophole that allows government officials to defer capital gains taxes on assets they have to sell to avoid a conflict of interest, as long as the proceeds are reinvested in government securities or a broad array of mutual funds approved by the government within 60 days.
And about Goldman Sachs (from a story today in the New York Times):
The beginning of the end is felt even in the halls of the white-shoe firm Goldman Sachs, which, among its Wall Street peers, epitomized and defined a high-risk, high-return culture.
Goldman is the firm that other Wall Street firms love to hate. It houses some of the world’s biggest private equity and hedge funds. Its investment bankers are the smartest. Its traders, the best. They make the most money on Wall Street, earning the firm the nickname Goldmine Sachs. (Its 30,522 employees earned an average of $600,000 last year — an average that considers secretaries as well as traders.)
And about the stock market (from a story today in the Economist):
At one point the Dow Jones industrial average had fallen than 700 points, its biggest intraday drop ever.
And about the future (from a story today in US News & World Report):