Wall Street Vet Downplays Skepticism Of Goldman's Tesla Upgrade: 'Just Doesn't Make Any Sense'
PreMarket Prep host Dennis Dick downplayed skepticism of Goldman Sachs Group Inc (NYSE: GS) intentionally upgrading Tesla Motros Inc (NASDAQ: TSLA) to reach a better secondary price for Goldman-led financing with Tesla.
"I don't think the risk reward was there to intentionally upgrade the stock," said Dick. Due to Goldman's bad reputation, the public found it easy to blame the bank for intentionally raising the price, according the PMP host.
Public Over Playing Goldman's Dark Past
"There are supposed to be Chinese walls in place so analysts don't know" what the investment bankers at companies such as Goldman are up to, stated Dick, although he did acknowledge that hasn't always been the case at the bank. "There have been a lot of crooked actions last year with Goldman," said Dennis.
This time, however, the reward for upgrading Tesla is insignificant to the risks Goldman was taking with their reputation. Dick explained the bank was smarter than purposely risking so much on their reputation for only a small price increase towards their secondary financing.
"It just doesn't make any sense."
Tesla was trading down 0.97 percent at $209.13.
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