News Why bankers can be such crooks?

Discussion in 'News & happenings' started by BANHAMMER, Jul 16, 2012.

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  1. BANHAMMER

    BANHAMMER Teh Almighty BanHammer Staff Member

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    Quoting from slashdot:

    "James and Janet Baker were the inventors of Dragon Systems speech recognition software, and after years of work, they created a multimillion dollar company. At the height of the tech boom, with investment offers rolling in, they turned to Goldman Sachs for financial advice. For a five million dollar fee, Goldman hooked them up with Lernout & Hauspie, the Belgium speech recognition company. After consultations with Goldman Sachs, the Bakers traded their company for $580 million in Lernout & Hauspie stock. But it turned out Lernout & Hauspie was involved in cooking their books and went bankrupt. Dragon was sold in a bankruptcy auction to Scansoft, and the Bakers lost everything. Goldman and Sachs itself had decided against investing in Lernout & Hauspie two years previous to this because they were lying about their Asian sales. The Bakers are suing for one billion dollars."
    Full link here(4 page story):
    http://www.nytimes.com/2012/07/15/business/goldman-sachs-and-a-sale-gone-horribly-awry.html?_r=1
     
  2. JD666

    JD666 RAID Leader Staff Member

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    Lol! This is Epic!!
     
  3. rpm

    rpm Lizard king Staff Member

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    this is because at a company like GS, there is no interconnect between teams. and the investment advisors never really bother to make sure their advice is based on solid facts.
     

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