Report: Goldman Underwrote, Invested in Lloyds Refinancing

Friday, 23 Apr 2010 12:56 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Goldman Sachs Group Inc. was involved as an underwriter and an investor in Lloyds Banking Group PLC's 23.5 billion pound ($36.1 billion) refinancing in late 2009, the Financial Times reported, citing four people involved in the capital raising.

Goldman demanded last-minute changes to the structure of the transaction, the newspaper reported, citing the people. This had the effect of benefiting Goldman's position as a bond investor, the newspaper reported.

Bankers at Goldman say the company's ethical walls bar underwriters from knowing how its proprietary traders invest, the newspaper said.

Goldman was hit last Friday with a U.S. Securities and Exchange Commission civil fraud lawsuit.

The British government owns 41 percent of Lloyds, the newspaper reported.

Citing people involved in the Lloyds refinancing, the newspaper reported that Goldman disagreed with a consensus of other banks on the amount of extra interest to be payable on bonds that were to be exchanged for new ones.

It also reported that Goldman was involved in discussions about which bonds should be prioritized for the exchange offer, and cited four people close to the deal in saying Goldman was a large investor in a 6.9 percent bond that was top-ranked.

The newspaper quoted Goldman bankers as saying on Thursday night that its proprietary position was "not substantial." It also reported that Goldman bankers said the bank's role as dealer manager was subservient to senior advisers.

Lloyds said in an email: "Terms and pricing are always subject to review until an announcement has been made. The final decision on the terms and pricing of this offer was made by the group following the recommendation of the syndicate, and not any one individual bank."

A call to Goldman was not returned.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

WHO Revises Ebola Toll as Deaths Increase

Friday, 31 Oct 2014 17:17 PM

The World Health Organization Friday revised its figures showing more people killed by the deadly Ebola virus, but the n . . .

Susan Ferrechio: Tuesday Could Be Rough on Democrats

Friday, 31 Oct 2014 17:17 PM

Tuesday could be a rough ride for Democrats, says Susan Ferrechio, chief congressional correspondent for The Washington  . . .

NY Post: Democrats Send Bully Letters Shaming 1M Voters

Friday, 31 Oct 2014 09:45 AM

Desperate Democrats in New York sent out shaming letters to 1 million voters this week in a bullying tactic to get them  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved