Google is hiring traders for its new bond trading platform, according to published advertisements on its job site. Currently, roles include trader of foreign government bonds, portfolio analyst for Google's U.S. government bond portfolio, and a portfolio analyst for agency mortgage-backed securities. All of the roles are at Google's Mountain View facility. A source who interviewed for one of the positions said that this was a means for Google (GOOG) to make use of its large cash reserves. Google has long discussed using its access to massive amounts of data tobuild a hedge fund.
follow in the footsteps of Worldcom and Enron. Shortly afterward the company officially entered the telecom and energy trading businesses. At the time, I argued that this was a poor use of the company's growing cash pile.
Now, it seems, Google is focusing squarely on growing this cash pile in true Salomon Brothers fashion. Clusterstock reports:
This is a very worrisome trend that the company is following. Expanding into new lines of business that aren't anywhere near the company's core competencies is a sign of managerial hubris that should put shareholders on high alert.