The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Goldman Sachs wins $6 bln in Treasury auction, prices up | Bailout Insight

The infamous Maiden Lane II securities were mostly picked up by Goldman Sachs yesterday and according to Busness Week, the FINRA Trace suggests Goldman Sachs will not be giving it away to investors / hedge funds and PE funds, holding on to the likely to gain securities on its own account. The prices sky rocketed in trade yesterday to 57.8 cents from 51 cents on the day the auction was announced.

Goldman Sachs beat Credit Suisse on the bidding in the latest Treasury auction

However Goldman Sachs is likely to distribute the securities internally to its funds while Credit Suisse chose to auction the securities over to private investors the same day when it recd $4.7 bln worth in the previous auction, probably using warehoused trade securities to book gains.

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