Goldman Turns Wine Into Wonga

Magic Wand And Hat

So how much is 15,000 bottles of fine wine worth ?

Goldman Sachs accepted almost 15,000 bottles of fine wine as loan collateral from a former high-ranking executive, according to a regulatory filing last month.

Andrew Cader, a former senior director at Goldman Sachs’s specialist-trading unit, pledged a secured interest in the wines, which are primarily from the Burgundy and Bordeaux regions of France, the filing showed.

Goldman Sachs’s move stands out because private banks that lend money to wealthy clients against assets such as artwork and real estate have been less willing to extend loans backed by fine wines, said four specialty lenders and attorneys. While investment-grade wines have outperformed the stock market over the past decade, the asset class has been prone to fraud, prompting billionaire William Koch to file a series of lawsuits to deter counterfeiting.

'There are a lot of very highly valued wines here', said David Parker, the head of Benchmark Wine Group in Napa, California, adding that the collection cited in the filing had an estimated market value in the low-seven-digit dollar range. 'The Bordeaux are all first growth and other classified-growth and the Burgundies are all grand cru and top premier cru'.

Hit the link below to access the complete Bloomberg article:

Goldman Loan to Ex-Trader Cader Is Backed by 15,000 Wines

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image: © Everaldo Coelho

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