Why 70 Mill was not enough

Why 70 Mill was not enough - Why $70 Million Wasn't Enough...

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August 18, 2007 PAGE ONE Why $70 Million Wasn't Enough With Wall Street Rules Changing, A Goldman Star Felt Underpaid; Throat Lozenges for 100 Days By MONICA LANGLEY DOW JONES REPRINTS This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit: www.djreprints.com . See a sample reprint in PDF format . Order a reprint of this article now . August 18, 2007; Page A1 New York Mark McGoldrick earned about $70 million in pay last year -- nearly $200,000 a day -- placing bets using Goldman Sachs Group Inc.'s money. He was one of Goldman's highest-paid employees. Turns out it wasn't enough. Internally dubbed "Goldfinger" for running one of Goldman's most-profitable units, Mr. McGoldrick delivered a big chunk of the firm's 2006 profits, people familiar with the matter say. He co-founded and built the firm's secretive "special-situations group," Goldman's elite but opaque money-making machine that buys and sells eclectic assets including British power plants, Japanese golf courses and Thai auto loans. But the 48-year-old Mr. McGoldrick decided he was working too hard, on a certain path to burnout. "Years of constant travel around the world took a personal toll on Mark, even though the business was exciting," says Lance West, a former Goldman partner who worked for Mr. McGoldrick. "Finally it was about the money -- but it wasn't just about the money." Mr. McGoldrick and some of the partners in his unit griped that they weren't being rewarded as well as counterparts at hedge funds and private-equity firms. Though highly paid, his team was "under-compensated," Mr. McGoldrick complained to Goldman colleagues. He groused about being shut out of investments because of potential conflicts inside Goldman. Then he quit. Now, he is planning a hedge fund where he believes he can make more money with fewer restrictions. The recent market tumult has Mr. McGoldrick "chomping at the bit" to get back into the fray, according to a person familiar with the situation. He has told colleagues that the current credit crunch -- which has battered bond and stock markets -- presents new opportunities. Page 1 of 6 Why $70 Million Wasn't Enough - WSJ.com 8/21/2007 http://online.wsj.com/public/article_print/SB118740076313301636.html
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Already, at least one group of investors is eager for him to open his own asset-management shop: some of his former partners at Goldman. The star investor's rise and departure speaks volumes about how the money is being made these days. For years, Goldman has been the securities industry's gold standard: The investment bank has been the world's most profitable, attracting talented bankers and traders who want to strike it rich. Mr. McGoldrick's success illustrates Goldman's willingness to risk its own capital to make unusual investments. Goldman's shares have fallen 22.6% over the past two months amid an increasingly volatile stock
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Why 70 Mill was not enough - Why $70 Million Wasn't Enough...

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