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Shares of Goldman Sachs (GS) were whacked especially hard yesterday. I noted that it was the eighth-worst performing stock in the entire S&P 500.

The reason may have to do with the Industrial & Commercial Bank of China, or ICBC (1398.HK). Last year, Goldman put up $2.6 billion for 5% of the bank. Hank Paulson made several trips to China to secure a role in the IPO. In the end, Goldman lost out to Merrill, Credit Suisse and Deutsche Bank.

Despite the snub, when the shares went public last year, Goldman made a huge profit. In fact, it was probably the largest profit for any trade anywhere. In less than nine months, Goldman made $4 billion. The investment was made with Goldman's GS Capital Partners V fund, which is heavily owned by Goldman's top execs.

But look at ICBC lately:

Posted by edelfenbein at February 28, 2007 11:06 AM