Goldman Sachs finds backers to bailout hedge fund

NEW YORK, Aug 13, 2007 (AFP) - Goldman Sachs, considered one of Wall Street's most prestigious investment banks, said Monday it had joined with other investors in a three-billion-dollar bailout of a hedge fund it manages. Goldman said it was pumping funds into the Global Equity Opportunities (GEO) hedge fund after recent financial market volatility had a sharply negative impact on the fund's performance.

"Given the market dislocation, the performance of GEO has suffered significantly. Our response has been to reduce risk and leverage," Goldman Sachs said.

The bank and securities firm said it was teaming up with other investors including C.V. Starr & Co., Inc., Perry Capital LLC and Eli Broad to inject three billion dollars into the troubled GEO hedge fund.

"We consider this an attractive investment opportunity. Existing investors in the fund will also have the opportunity to participate," it said.

The Standard and Poor's credit rating agency said its rating on Goldman Sachs would not be affected by the bank's move, saying the investment banking behemoth had "strong market positions and diversified revenue streams."

Goldman Sachs, which has been described by US President George W. Bush as one of Am