Goldman Sachs Co

A former Goldman Sachs & Co. economist pleaded guilty to fielding an insider bond tip that gave the firm an eight-minute edge on the market and nearly $4 million in tainted profit. John Youngdahl, 44, of Summit, N.J., will spend about three years in prison if a federal judge accepts terms of a plea deal reached with the government. He would also pay $240,000 to settle related charges by the Securities and Exchange Commission if the judge approves the settlement. From Associated Press

Goldman Sachs & Co. has agreed to give back $9.5 million of $13.2 million that WorldCom Inc. paid for financial advice in the weeks before the telecommunications company's huge bankruptcy filing. WorldCom hired Goldman in May 2002 to help find new investors, advise on possible mergers with other telecom firms, arrange bankruptcy financing and explore the possible sale of assets and businesses, according to papers filed in U.S. Bankruptcy Court in Manhattan.

A former Goldman Sachs Group Inc. investment banking associate who helped mastermind a $6.7-million insider trading ring was sentenced Thursday to almost five years in prison for misusing information from an analyst, a juror and a magazine. Eugene Plotkin, who worked in the fixed-income research division of Goldman, the largest U.S. securities firm by market value, is one of two men who orchestrated a scheme to trade on secret tips from a Merrill Lynch & Co.

Wall Street giant Goldman Sachs Group Inc. got a much-needed seal of approval Tuesday from billionaire investor Warren E. Buffett. Buffett's Berkshire Hathaway Inc. agreed to invest $5 billion in the investment bank via a purchase of preferred stock, Goldman announced after the stock market closed. Berkshire also will get warrants to buy about 10% of Goldman's common stock at a discount price of $5 billion. Goldman said it also would raise $2.5 billion in a public offering of common shares.

Goldman, Sachs & Co. urged some of its big clients to place investment bets against California bonds this year despite having collected millions of dollars in fees to help the state sell some of those same bonds. The giant investment firm did not inform the office of California Treasurer Bill Lockyer that it was proposing a way for investment clients to profit from California's deepening financial misery.

Goldman Sachs Group Inc. on Tuesday reported its first quarterly loss since it went public in 1999, losing $2.29 billion during its fiscal fourth quarter, but investors seemed unfazed and sent its shares up 14.4%. The loss proves the turmoil in the financial markets has tripped up even the best-run financial institutions. The New York-based bank has long been considered the premier investment bank on Wall Street, and in recent quarters the sturdiest amid the turmoil. Goldman lost $4.

Goldman Sachs Group Inc. and investment bankers were winners in 2006 as a record $3.7 trillion in mergers and surging stock prices pushed Goldman's profit and Wall Street bonuses to new highs. Amaranth Advisors topped the losers list after bad energy trades drove it out of business in the biggest hedge fund collapse to date. More than 190 companies, including Apple Computer Inc., were caught in an options backdating scandal that has led to earnings restatements and government probes.

Goldman Sachs Group Inc., the biggest Wall Street investment bank, was the most prolific advisor in mergers and acquisitions in 2006, according to deal-tracking firms. The New York-based securities powerhouse gets bragging rights in a record year for the industry, with about $4 trillion worth of takeovers tallied worldwide. Data provided by Thomson Financial and website Mergermarket.com ranked Goldman the No. 1 advisor on deals in North America this year. There was $1.

Gap Inc. has hired investment bank Goldman Sachs Group Inc., sources familiar with the matter said Monday, stoking investor hopes the struggling apparel retailer could be up for sale and sending its shares up as much as 11%. The two sources said Gap, with a market capitalization of more than $15 billion, hired Goldman last month, but it was unclear exactly what the bank was hired to do.

Williams-Sonoma Inc., the owner of kitchenware stores and the Pottery Barn home decor retail chain, has hired Goldman Sachs to explore strategic options, which could include the sale of the company, people familiar with the matter said Tuesday. Goldman declined to comment. San Francisco-based Williams-Sonoma didn't return several calls seeking comment. Williams-Sonoma's contact with Goldman is seen to be in its early stages, and sources were not aware of any buyers at the doorstep.