Goldman's Discount Fortune

Lloyd Fonzie Blankfein

Goldman Sachs has likely generated around $1.2bn of revenue over six years from its dealings with discount retailer Dollar General Corp, a Reuters review shows.

But don't expect the investment bank to boast about it.

The news agency reports that much of the revenue stems from an equity investment that is lumped into a catchall earnings segment called 'Investing and Lending'.

Goldman created the segment in 2011 to shine some light on how much money it makes from investing its own money, but it still confounds analysts and investors because the bank does not provide details on the performance of individual assets.

In the meantime, Bloomberg reports that Goldman doesn’t have to face Capmark Financial Group Inc.’s $147m lawsuit claiming it was improperly influenced by the bank to refinance $1.5bn in unsecured debt in a way that improved its position as a creditor, a judge said.

U.S. District Judge Robert Sweet in Manhattan ruled that Capmark, which sued Goldman in 2011, can’t recover the money. Horsham, Pennsylvania-based Capmark claimed the sum was an insider preference paid to Goldman within a year of the Capmark bankruptcy.

Finally, Reuters also reports Goldman must face a lawsuit in which Prudential Financial accused the Wall Street bank of defrauding it into buying more than $375m of residential mortgage-backed securities it knew were unsafe.

U.S. District Judge Susan Wigenton in Prudential's hometown of Newark, New Jersey said the second-largest U.S. life insurer adequately alleged Goldman's deception about the quality of certificates that several Prudential affiliates had bought from 16 securitizations between February 2004 and December 2008.

How Goldman's dollar-store bet reaped a fortune

Goldman Sachs Wins Dismissal of Capmark’s Lawsuit

Goldman fails to dismiss Prudential mortgage fraud lawsuit

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts