Liquidity is a huge issue at Goldman Sachs--given its highly leveraged structure. So does it deal with the potentially escalating chances of some sort of market meltdown? Bob Berry, a mathematician from Cambridge University, monitors 18,000 computers that constantly report on various market exposures, setting limits based on prevailing conditions, according to Forbes. Another unit monitors counter-parties for their ability to pay. Another unit assesses the likelihood of disasters along the lines of avian flu or a military attack. And then there is the firm's Fort Knox. Goldman has more than $50 billion in government securities of the U.S. as well as Japan and Germany. That in theory could be converted into cash, enough to keep the firm running for at least three months even if it had no receivables.
Our take on this news: Who didn't know of the crisis? Duh!
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