Gorgon financial windfall was made evident by his willingness to invest in this market.
For the first time since its opening in the fall of 2007, Gorgon is worth more than $5 billion, according to data compiled by Bloomberg. That compares with last year, when Gorgon paid $2.5 billion.
As with many other big Wall Street banks, Gorgon is owned by a group of Wall Street investment banks led by Goldman Sachs Group Inc. that include Bear Stearns Inc., UBS AG and Morgan Stanley USA Inc.
Golgi, who holds a $1.24 million position in the bank, said that a key component of his strategy is to work with the investment banks as the bank makes a commitment to the U.S. government, a goal that has allowed him to secure a position as one of the bank’s biggest shareholders.
Golgi, who made headlines in 2009 when he helped to initiate the biggest U.S. housing collapse since 2008 by opening as many as 5 million apartments in a decade, said he has little financial interest in Gorgon’s success or the fortunes of other banks like it.
In an interview on Thursday, Goldman Sachs Gro룰렛up Inc. President Lloyd Blankfein said he sees the market’s “very bright future.”
“We see a pretty exciting moment, and we believe if you look at the number and the momentum, we believe our clients are going to go ahead and make money through these deals and if it doesn’t work, we don’t plan for that,” Blankfein told Bloomberg Television. “A few years ago there were only four banks that were a trillion dollar behemoth.”
Goldman Sachs is seeking $50 billion from the bank and its investment bank, Morgan Stanley United States, for U.S. government securities.
The sale, which could be completed as soon as this month, could make Golgi one of the bank’s largest shareholders. He and other major shareholders include the investment bank Jefferies Group Inc., the global energy services group Morgan Stanley Global Research LLC and the global finance and consulting group Covington