LIZ: LET'S CHECK IN ON GOLDMAN
SACHS STOCK.
IT IS MOVING HIGHER BY 1% RIGHT
NOW.
YOU KNOW WHAT?
KUDOS TO GOLDMAN SACHS CEO DAVID
SOLOMON.
WITH RESIDUE OF A POTENTIAL
SCANDAL STUCK TO THE INVESTMENT
BANK, THE CEO IS APPARENTLY
FIGURING THE BEST WAY AROUND A
SCANDAL IS TO FACE IT.
CHARLIE, YOU ARE A GOLDMAN
HATER.
I SAY KUDOS TO DAVID SOLOMON.
>> VERY WELL.
SHALL WHERE I BEGIN?
LIZ: BEGIN WITH THE FACT YOU'RE
WRONG.
>> LET'S PUT UP DAVID SOLOMON'S
PICTURE.
WE SHOULD LOOK AT HIM.
TELL ME HE DOESN'T LOOK A LITTLE
LIKE DR. EVIL.
LIZ: NOT AT ALL.
>> HE'S GOT A LITTLE DOCTOR,
RIGHT?
LIZ: LOOK AT HIM.
HE'S COOL.
>> YEAH, YOU'RE RIGHT.
I THINK BLANKFEIN LOOKED MORE
LIKE DR. EVIL.
LIZ: WILL YOU STOP?
>> VERY WELL.
IN ALL SERIOUSNESS, THIS WILL BE
A BIG DAY ON WEDNESDAY FOR
GOLDMAN SACHS.
ITS EARNINGS, FOURTH QUARTER
EARNINGS.
MOST FIRMS HAD A LOUSY TRADING
DECEMBER, FLATTENING YIELD
CURVE, HIGHER INTEREST RATES,
REMEMBER, THE FED RAISING
INTEREST RATES, OTHER STUFF.
SO IT'S PROBLEMATIC.
THAT SHOULD EXACERBATE
GOLDMAN'S -- GOLDMAN IS VERY
HIGHLY TUNED TO TRADING.
THEY ARE A TRADING FIRM.
THAT'S WHERE THEY MAKE A LOT OF
MONEY.
THAT'S PRICED INTO THE STOCK.
THE OTHER THING THAT'S BEING
PRICED INTO THE STOCK IS THE BIG
MALAYSIAN FUND SCANDAL, WHAT
SOURCES ARE TELLING THE FOX
BUSINESS NETWORK, DAVID SOLOMON
WILL BE ON THE CALL AS WE
REPORTED.
LIZ: ON FRIDAY.
>> ON FRIDAY.
LIZ: RIGHT HERE.
>> IT'S VERY UNUSUAL FOR GOLDMAN
SACHS CEOs TO BE ON THE CALL.
HE'S DOING THIS TO REPAIR SOME
DAMAGE WITH INVESTORS.
THE STOCK IS OFF 30% THIS YEAR.
LIZ: YEAH.
WE KNOW THAT.
WE SAID THAT FRIDAY.
>> I KNOW.
CALM DOWN.
PEOPLE NEED TO KNOW A LITTLE BIT
OF BACKGROUND AND WHAT WE
UNDERSTAND IS THAT SOLOMON WILL
ADDRESS THE MALAYSIAN FUND
SCANDAL, PROVIDING GOLDMAN'S I
GUESS SIDE OF THE STORY.
THIS IS WHY GOLDMAN IS IN THE
MESS IT'S IN AND FACES MASSIVE
LIABILITY.
AS WE REPORTED FRIDAY, A LOT OF
PEOPLE PICKED BETWEEN $5 BILLION
AND $10 BILLION.
THEY UNDERWROTE BONDS FOR THIS
MALAYSIAN FUND.
THEY MADE CERTAIN DISCLOSURES TO
INVESTORS THAT EVERYTHING WAS
OKAY WITH THE FUND.
THEY ARE BEING INVESTIGATED THAT
THEY DID NOT DO THEIR DUE
DILIGENCE BECAUSE THERE WAS A
LOT OF FUNNY BUSINESS GOING ON
WITH THAT FUND, AS YOU KNOW.
IT'S FACING MULTIPLE
INVESTIGATIONS FOR USING MONEY
FOR --
LIZ: THE DUDE IN CHARGE.
>> JAY LHO.
LIZ: L-H-O.
HANGING WITH THE SUPER MODELS.
>> YEAH.
YOU KNOW, IT'S JUST AMAZING.
LIZ: HOW COME NOBODY EVER HANGS
OUT WITH TV ANCHORS?
OH, WAIT, JEFF BEZOS.
>> THERE YOU GO.
SO HE'S GOING TO ADDRESS IT.
I THINK WHAT HE'S GOING TO SAY
IS WE WERE FOOLED LIKE EVERYBODY
ELSE.
I THINK THAT'S PROBABLY HIS BEST
DEFENSE.
BUT SOLOMON WILL ADDRESS IT.
HE ALSO HAS TO ADDRESS A
BUSINESS MODEL QUESTION BECAUSE
A LOT OF ANALYSTS AS WE REPORTED
FRIDAY ARE QUESTIONING THE
BUSINESS MODEL OF GOLDMAN SACHS
THAT'S SO HEAVILY WEIGHTED TO
TRADING AND INVESTMENT BANKING
AND DO THEY NEED TO BUY A
BROKERAGE FIRM.
THESE ARE SOME OF THE THINGS
THAT WILL COME UP.
YOU KNOW, LISTEN, JUST SO YOU
KNOW, I'M NOT A GOLDMAN HATER.
LIZ: I KNOW.
HE'S AN EQUAL OPPORTUNITY --
>> I HATE EVERYBODY EQUALLY.
BUT THEY DO HAVE AN ISSUE.
THIS IS A FIRM THAT'S IN THE
SOUP RIGHT NOW.
AND HE'S GOING TO HAVE TO PULL
ONE OUT OF HIS HAT AND TRY TO
CONVINCE INVESTORS THEY'RE ON
THE RIGHT TRACK.
YOU KNOW, I THINK INVESTORS WILL
REALLY ASK, THEY WILL ASK ABOUT
THE SCANDAL, THEY WILL ASK FOR
HIS DEFENSE AND THEY WILL ALSO
ASK ABOUT GOING FORWARD.
I THINK THEY WOULD BE REMISS IF
THEY DIDN'T SAY DO YOU NEED TO
BUY A BROKERAGE FIRM, DO YOU
NEED TO DO SOMETHING THAT'S
STRUCTURALLY DIFFERENT THAN WHAT
YOU'RE DOING NOW BECAUSE THE
NUMBERS ARE NOT WORKING OUT AS
WELL.
LIZ: THE WORST THING TO DO IS
WHAT CBS AND LES MOONVES DID ON
THAT CALL.
>> NOT ANSWER QUESTIONS.
HE WAS ON IT.
LIZ: THEY DIDN'T EVEN ASK, THE
ANALYSTS DIDN'T EVEN ASK THE
QUESTIONS.
BUT HERE, THE WORD IS OUT AT
LEAST THROUGH YOU THAT THEY'RE
NOT GOING TO SIT THERE AND
HAMSTRING --
>> NO, I THINK THEY WILL ANSWER
QUESTIONS.
THE DIFFERENCE BETWEEN THAT, YOU
KNOW, MOONVES AND --
LIZ: HUGE DIFFERENCE.
>> -- SOLOMON.
LIZ: THEY BULLY ANALYSTS.
>> SOLOMON, NO ONE IS SAYING
ANYTHING, PERSONALLY DOING
ANYTHING WRONG.
HE'S NOT INVOLVED IN A #METOO
SCANDAL BUT REMEMBER, MOONVES
WAS A DARLING OF WALL STREET.
THE STOCK WAS UP, THE ANALYSTS
LOVED HIM FOR THAT.
SOLOMON RIGHT NOW IS TAKING OVER