This is a very astute move. One day before the last day to enter in redemptions, GS announces a cash injection into two of its hedge funds that have lost significant value during the volatility of the last two weeks. This effectively shores up the "run on the bank", and is a wonderful example of an investment bank using readily marketable names (such as Hank Greenberg himself...one THE most savvy and tough businessmen on the planet) to increase confidence among its investors. A wonderful marketing move, and this is the only reason why GS would seek to publicize this bailout (which of course is denied to be a bailout). One has to applaud.
http://biz.yahoo.com/ap/070813/goldman_funds.html?.v=19
Monday, August 13, 2007
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