Money and Power_ How Goldman Sachs Came to Rule the World

Money and Power_ How Goldman Sachs Came to Rule the World

MOBI-004733
William D. Cohan
2

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Copyright © 2011 by William D. Cohan

All rights reserved. Published in the United States by Doubleday, a division of Random House, Inc., New York, and in Canada by Random House of Canada Limited, Toronto.

www.doubleday.com

DOUBLEDAY and the portrayal of an anchor with a dolphin are registered trademarks of Random House, Inc.

Portions of this work were previously published in Vanity Fair.

Grateful acknowledgment is made to the Columbia University Oral History Research Office Collection.

Jacket design by John Fontana

Jacket illustration by Serial Cut™

Title page photograph by Marco Di Fabio / Flickr / Getty Images

Cataloging-in-Publication Data is on file with the Library of Congress.

eISBN: 978-0-385-53497-0

v3.1_r1

TO QUENTIN, DEB, AND TEDDY

CONTENTS

Cover

Title Page

Copyright

Dedication

PROLOGUE  / The Pyrrhic Victory

CHAPTER 1 / A Family Business

CHAPTER 2 / The Apostle of Prosperity

CHAPTER 3 / The Politician

CHAPTER 4 / The Value of Friendship

CHAPTER 5 / “What Is Inside Information?”

CHAPTER 6 / The Biggest Man on the Block

CHAPTER 7 / Caveat Emptor

CHAPTER 8 / The Goldman Way

CHAPTER 9 / A Formula That Works

CHAPTER 10 / Goldman Sake

CHAPTER 11 / Busted

CHAPTER 12 / Money

CHAPTER 13 / Power

CHAPTER 14 / The College of Cardinals

CHAPTER 15 / $10 Billion or Bust

CHAPTER 16 / The Glorious Revolution

CHAPTER 17 / It’s Too Much Fun Being CEO of Goldman Sachs

CHAPTER 18 / Alchemy

CHAPTER 19 / Getting Closer to Home

CHAPTER 20 / The Fabulous Fab

CHAPTER 21 / Selling to Widows and Orphans

CHAPTER 22 / Meltdown

CHAPTER 23 / Goldman Gets Paid

CHAPTER 24 / God’s Work

ACKNOWLEDGMENTS

<="justify">NOTES

INDEX

Other Books by This Author

PROLOGUE

THE PYRRHIC VICTORY

Wall Street has always been a dangerous place. Firms have been going in and out of business ever since speculators first gathered under a buttonwood tree near the southern tip of Manhattan in the late eighteenth century. Despite the ongoing risks, during great swaths of its mostly charmed 142 years, Goldman Sachs has been both envied and feared for having the best talent, the best clients, and the best political connections, and for its ability to alchemize them into extreme profitability and market prowess.

Indeed, of the many ongoing mysteries about Goldman Sachs, one of the most overarching is just how it makes so much money, year in and year out, in good times and in bad......