Rumors were running rampant last week that Goldman Sachs may be looking for a little more privacy.
The rumors — and they were just that, rumors — were that Goldman was tiring of the constant regulatory harassment and wished to return to its roots as a private partnership.
While nothing is impossible, it would be a mathematically extraordinary challenge for an $85 billion bank to go private.
Is the prospect of borrowing money from the Federal Reserve at near-zero interest rates enough to combat the constant indignations of Sen. Elizabeth Warren, et al.?
Goldman could drop its banking license and still have access to cheap money away from DC scrutiny.
Given that landscape, let’s posit an amusing idea.
Suppose Goldman CEO Lloyd Blankfein hosts Berkshire Hathaway chief Warren Buffett at an ideas dinner.
After a hearty feast, surely these two icons of finance could come up with a real powerhouse solution to the issues both companies face over a cocktail or two.
Blankfein, as is his personality, says, “Look, Goldman’s problems are the regulatory overreach of Sen. Warren.”
“Berkshire’s problem,” Blankfein continues, “is you aren’t getting any younger, and whatever you think, there is no real succession plan at Berkshire.”
“Remember you are 84 and Charlie [Munger] is 90,” Blankfein says as he freshens the drinks.
“Warren, the way I see it, you and I, we both have problems, business problems, and we all know your bench isn’t deep at Berkshire.
“You have navigated Washington better than anyone,” Blankfein says, leading to his endgame.
“What if we merged? Goldman folds into Berkshire, and I become the president-in-waiting?”
That hypothetical solution would solve headaches faced by the two companies.
Berkshire gets a stronger bench for succession, and Goldman is no longer a public company but a part of Berkshire Hathaway — or Berkshire Sachs.