Goldman Sachs Managing Director Leaves Company After Big Crypto Payout

Julija A. Image
ByJulija A.
May 13,2021

It seems that even the head honchos at Goldman Sachs invested into Dogecoin this year. The “joke” cryptocurrency and its huge price hike was reportedly the reason why Aziz McMahon called quits at the investment banking company.

McMahon departed the company suddenly, but not after cashing out on the meme crypto everyone has been talking about recently. The news of McMahon’s departure came from an update on his LinkedIn profile, followed by an official confirmation to the press by a Goldman Sachs representative. How much cash the former director amassed from selling his coins is unknown, but it obviously was more than enough to leave a high-paying job at one of the top banks. Maybe mister McMahon expected the Dogecoin would crash right after Elon Musk debuted at Saturday Night Live. At least he won’t be needing a bad credit loan to continue his career.

Dogecoin is definitely the hotness of the year, at least in the crypto world. Originally created as an extension of an internet meme, it was never supposed to take off. That, of course, couldn’t stop the crypto enthusiasts to amass millions of these coins and, in time, Dogecoin became equal with Ether, Litecoin, and other alt coins. Still, it never really was expensive to purchase, floating at just $0.05. But, when Elon Musk and other influential people started promoting it, everyone jumped on the hype train trying to get Dogecoin value “to the Moon,” which led to a price increase of more than 10,000%. When the aforementioned episode of SNL aired, the overwhelming negative reception to the episode and collective sigh at Musk’s acting performance plunged Dogecoin’s value by a huge margin. The coin is stabilizing now, but it’s far from its highest price.

Back to McMahon, the future endeavours of former Goldman managing director are still unknown. A rumor suggests he might be starting his own hedge fund, but at the time of writing this piece there weren’t any solid proofs to support that claim. Whatever his next step is, there’s no doubt internet sleuths will immediately report about it.

About the author

Julia A. is a writer at SmallBizGenius.net. With experience in both finance and marketing industries, she enjoys staying up to date with the current economic affairs and writing opinion pieces on the state of small businesses in America. As an avid reader, she spends most of her time poring over history books, fantasy novels, and old classics. Tech, finance, and marketing are her passions, and she’s a frequent contributor at various small business blogs.

More News

Even more corporations are looking into different venues of profit through consumer healthcare. Most recent acquisition in this industry has been made by Walmart. The giant retailer revealed it has made an agreement with MeMD for integrating this telehealth provider into the Walmart Health network. According to retail statistics, online retail is generally on the rise and a lot of brick-and-mortar stores are incorporating various online branches to their business. “Telehealth offers a great opportunity to expand access and reach consumers where they are and complements our brick-and-mortar Walmart Health locations. Today people expect omnichannel access to care, and adding telehealth to our Walmart Health care strategies allows us to provide in-person and digital care across our multiple assets and solutions,” said Dr. Cheryl Pegus, executive vice president of Walmart’s Health & Fitness division. Currently, Walmart has 20 locations where it provides healthcare in-person, with plans for future expansions of this service already in motion. Compared to more than 4,700 retail locations it doesn’t look as impressive, which is the reason behind the latest acquisition. MeMD has been operating for more than a decade and its 24/7 healthcare service is another step into the omnichannel health service Walmart is aiming for. Practically at the same time, Amazon has landed its very first customer for the Amazon Care health program. The Washington-based fitness equipment manufacturer Precor is now the first company that will use Amazon’s pay-per-user healthcare plan. Founded in 1980, Precor now has 800 employees and they’ll all get access to Amazon Care’s services, but the company won’t be paying a flat fee for that. Instead, the monthly fee is calculated based on how many of Precon’s employees actually use the service. This way, the customers can save significant amounts of money on healthcare without sacrificing anything to the end users. That is, their employees. Of course, Amazon and Walmart aren’t the only big players fighting for their piece of the consumer healthcare cake. Walgreens and CVS Health Corp. are famously leveraging their physical locations to also offer affordable physical treatments, specifically for patients with conditions that would otherwise cost a lot to take care of. According to analysts, this is just the start of big acquisitions and expansions in this field.
By Julija A. · March 01,2022
Finance Watch, an initiative for improving the impact of the financial world on society, urged the European Commission to strictly regulate banks and insurers dealing with climate-related endeavors. The group is lobbying for a 150% risk weight for investments in companies whose activities damage the environment. The so-called “climate-finance doom-loop” implies that “the longer the EU waits, the higher the chances that it will face a financial crisis induced by the climate crisis.” The proposed solution would force banks to hold as much as three times the amount they usually would to cover the risks involved with the fossil-fuel business, such as financing new refineries or mines. The EU is in an unenviable position at the moment: It’s already in the process of reviewing its policies for lenders and insurers, but also needs their support for the pandemic recovery effort. Banks provided loans and lines of credit to small businesses across Europe, and they will have an even more vital role after the pandemic - the reallocation of resources. However, the growth in eCommerce and virtual communication services made for excellent investment opportunities for banks, which will, in all likelihood, continue to be profitable after the pandemic. This skyrocketing of profits created room to raise the risk assessments and allocate more insurance funds for companies traditionally considered to be low-risk. In the eyes of the banks, climate-endangering businesses are currently no different from other corporate financings. Companies in the fossil-fuel industry often have good credit standing, with risk ratings under 50%. That percentage doesn’t nearly cover the financial damage if and when the activities of those companies take a downward turn, especially since climate events are a substantial uncontrollable factor in their operations. This is why the Finance Watch is pushing for the EU to modify its current rules on the topic. If the EU enforced a 150%-risk rule for banks investing in environmentally impactful enterprises, it would bring such investments to the same level as private-equity and other high-risk investments. Finance Watch is supported by its members, public donations, philanthropic foundations, and the EU itself.
By Julija A. · May 11,2021
As the total US student debt has exceeded $1.8 trillion, more than a million people have signed an online petition, relying on President Biden’s statement during his campaign trail to forgive some of the student debt piling up. The numbers disclosed in the petition are more than worrisome: Of almost 45.4 million people who took a student loan, approximately 80% were unable to pay it back, even before the pandemic. Due to outstanding student debt taken in 2004, default rates stand at 40%, even though students in 2004 took much less money than students these days have to take to cover their studying expenses. By the same metric, the current borrowers’ rate is expected to exceed 75%, which is approximately four times the default rate of subprime home mortgages. As more and more people visit job posting sites since the COVID-19 struck, the need for a permanent solution to ever-growing student debt is becoming evident. There were several attempts to remedy the effect the pandemic had on student loan borrowers. The CARES Act, which granted people a break from their payments until September 2020, was helpful, but not nearly enough, as shown by the call from House Democrats, which, under the HEROES Act, asks to prolong the pause in payments for another year. Biden relied on forgiving student loans in his election campaign. The last month’s news of him asking his Education Secretary to see whether he can legally cancel up to either $10,000 or $50,000 of student debt stirred new hopes, but the main question remains: Is the president able to take action independently and cancel student debt without legislation? It is safe to say that Democrats still hold a fragile majority in Congress, and many wonder whether it would agree to forgive the loans even if it came to it. A. Wayne Johnson, former COO of the Office of Federal Student Aid under Trump’s government, asked for student loan forgiveness of $50,000 per borrower. However, the creators of the petition say there is no political background to it and that most borrowers identify as politically independent. While some argue that canceling student debt would be unfair to those who budgeted and paid off their debt or never took loans in the first place, it is painfully apparent that $1.8 trillion in outstanding debt is a problem that demands some solution. The other side to the argument is the claim that forgiving student debt would be stimulating for the economy. It would increase the borrowing capacity of a vast number of people, who are likely to use the money for buying homes instead of paying off student debt. This money would also benefit up-and-coming entrepreneurs who are currently either getting into more debt or having to rely on alternative funding methods, such as crowdfunding, to kick-start their businesses. This petition seems to be only the beginning of a movement toward forgiving student loans. It is unlikely to subside, as other supporters, borrowers, and politicians are starting to support this movement and advocate for the president to follow through on his promises to cancel student debt.
By Julija A. · May 11,2021

Leave your comment

Your email address will not be published.


There are no comments yet