Thursday, March 04, 2010

Goldman Sachs has feelings too

GS's 10-K filing on 3/01/2010 below, with clarifying commentary thrown in for free (just doing God's work here):

Substantial legal liability or a significant regulatory action against us, or adverse publicity [talking about you, Zero Hedge], governmental scrutiny or legal and enforcement proceedings regardless of the ultimate outcome [Regardless of outcome - so don't inititate in the first place, or else], could have material adverse financial effects, cause significant reputational harm to us or adversely impact the morale and performance of our employees [and we can't stress enough, all of whom are doing God's work, not like those heathens at CME Group], which in turn could seriously harm our businesses and results of operations [We had 131 $100mln days in 2009, and we're shooting for 132 days in 2010]. We face significant legal risks in our businesses, and the volume of claims and amount of damages and penalties claimed in litigation and regulatory proceedings against financial institutions remain high. Our experience has been that legal claims by customers and clients increase in a market downturn [Which is odd since we make even more money in the downturns] and that employment-related claims increase in periods when we have reduced the total number of employees [like how we said layoffs without saying layoffs?]. For a discussion of how we account for our legal and regulatory exposures, see “— Use of Estimates” below. ["Use of Estimates" is code for "go f*ck yourself."]

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