Impressively, Goldman Sachs (GS) completely avoided the Madoff meltdown, and now we’ve confirmed that the bank had none of its clients’ money in Galleon either.
Goldman manages money for a select group of very wealthy individuals and institutions, including many current and former Goldman employees. The wealth management clients often place money in funds of funds run by Goldman, giving them access to hedge funds that are closed to most investors.
But none of that wealth management client money wound up in Galleon.
How were they two for two? No idea. And it’s especially interesting since Goldman was getting prime brokerage business from Galleon, and, according to a report earlier this week, giving the firm extra “colour” on the market.