Goldman partners get margin calls

This comes from Rueters

Goldman Sachs Group Inc said several partners must cover margin calls triggered by the depressed value of Goldman stock and many of the firm’s hedge funds, but the bank denied it is lending money to its executives.

“Partners can, and many do, have margin accounts at the firm,” Goldman spokesman Lucas van Praag told Reuters on Wednesday. “To the extent that a margin call is triggered, they, just like anyone else, will receive a margin call. If the call isn’t met, the firm will sell stock to cover the shortfall.”

Van Praag denied that Goldman was extending loans to executives.

“Sarbanes-Oxley specifically precludes firms from lending or facilitating lending to an executive officer,” he said. “We do not provide partners with loans to cover margin calls.”

Goldman says partners hit by margin calls – Reuters

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