It looks like life in China is difficult for Goldman’s. A place where they may actually have to have brains to make money as opposed to making money by cooking the books in Greece or living endlessly off the money spigots coming out of Washington D.C. and the Federal Reserve.
I know the owner of Geely personally and I would’t put a dime in it. This tells me these guys do not understand China or industrial businesess. My guess is they are spinning their success in China on the Geely trade. It was so successful they fired have their executive board!
It looks like they are walking away from China to put more focus back on ripping off American tax payers and front-running their client whom they refer to as “Muppets”.
From Want China Times….
As Goldman Sachs cut its stake in Chinese automaker Geely Automobile Holdings earlier this month, Dan Dees, the co-head of the company’s investment banking unit for the Asian-Pacific region and the person
responsible for clinching the profitable Geely deal, has also left the company, the Chinese-language magazine Capital Week reports.
Dees and several of his colleagues had received letters asking them to quit Goldman Sachs in October as part of the company’s plan to restructure its operations in China, marking the largest management reshuffle the firm has carried out since entering the Chinese market, the report said. It added that Goldman Sachs was aiming to trim 40% of positions at executive director and above in China.
On Dec. 3, the group’s private equity fund had raised HK$2.375 billion (US$306 million) by selling half of its shares in Geely at an average transaction price of HK$3.3 (US$0.43) a share. Three years ago, the group had spent HK$2.3 (US$0.30) per share to buy the Geely stake. The group had recovered the cost of investment over the past three years and still held half its original stake.
Dees was credited as a major contributor to the successful transactions completed by the group but has now been forced out, as well as several other senior executives in various other divisions of the Chinese branch.
Cai Jinyong, a Chinese national with more than 20 years of experience in the financial services industry who had been working for Goldman Sachs as the head its investment banking arm in China offered his resignation
after he was appointed executive vice president and CEO of the International Finance Corporation in August.
The report said the group’s plan to terminate senior managers before Chinese New Year was also aimed at cutting back on enormous year-end bonus payments. Goldman Sachs has also announced that it will not be increasing investment in China from 2013. The group had invested an additional 34.3 million yuan (US$5.5 million) in 2011 and 75.45 million yuan (US$12.1 million) in 2010.