Fri, Jul. 22, 2:09 AM
- Goldman Sachs (NYSE:GS) will soon begin promoting a new corporate-buyout fund of between $5B-$8B, according to the WSJ, marking the first time it's launched such a fund since 2007.
- The new pool is named West Street Capital Partners, after Goldman's lower Manhattan address, in order to comply with a post-crisis rule that prevents P-E funds from bearing their parent bank's name.
Thu, Jul. 21, 7:03 PM
- For the first time since the global financial crisis, Goldman Sachs (GS -1.1%) is jumping heavily back into corporate-buyout funding.
- The bank is raising a private-equity fund of $5B-$8B, its first of that type since 2008, The Wall Street Journal reports. It's smaller than the $20B fund it raised in 2007 -- and in accordance with new rules, it will have less Goldman capital and even less of its name (it will be called West Street Capital Partners).
- In an effort to cut big-bank betting, the Dodd-Frank financial law's "Volcker Rule" says that banks can contribute no more than 3% of the money raised by P-E or hedge funds, and that sum can't be more than 3% of the bank's capital.
- Overall, Goldman's private-equity arm oversees $65B in assets.
Wed, Jul. 20, 2:17 PM
- Alongside falling profits at Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Morgan Stanley (NYSE:MS), the trio collectively cut employee pay in Q1 and Q2 by 17% to $19B, according to a Bloomberg review of regulatory filings.
- It's a big change from a year ago when the three boosted H1 compensation by 4%.
- Goldman cut the most, setting aside 28% less to $5.99B. Morgan Stanley trimmed 14% to $7.7B, and JPMorgan 6% to $5.3B. Citigroup and Bank of America don't break out compensation for the IB units.
- Source: Laura Keller at Bloomberg
Tue, Jul. 19, 10:08 AM
- FICC revenue up 20% was a bright spot, but business in other units was sluggish, notably in investment banking, where revenue fell 11%, in part thanks to a slump in M&A business, but mostly due to a major drop in IPO business - equity issuance dropped 55%.
- Both Nomura's Steven Chubak and Citi's Keith Horowitz remind Goldman has already had a nice run on the back of the post-Brexit bounce and earlier earnings reports from JPMorgan, Citi, and Bank of America (Goldman's ahead 10% in July), so perhaps today's pause shouldn't be a surprise.
- Speaking on the earnings call, CFO Harvey Schwartz says client volume levels were down headed into Brexit, but hit peak activity following the shock vote. He doesn't expect Brexit to be a headwind to the bank's business.
- WSJ blog
- GS -0.5%
- Previously: Trading revenue bounces back at Goldman, but conditions remain challenging (July 19)
Tue, Jul. 19, 7:48 AM
- Q2 net earnings of $1.82B or $3.72 per share vs. $1.98 one year ago. It's a sizable beat from $3.00 expected for this quarter, but revenues fell 12.6% on a Y/Y basis. ROE of 8.7% in Q2 and 7.5% in H1.
- Investment Banking revenues of $1.79B fell 11% Y/Y. Financial advisory revenue of $794M down 3% as M&A slowed down. Underwriting revenue of $993M down 17% from a strong quarter one year ago, reflecting a big decline in industry-wide activity, though debt underwriting rose smartly.
- Institutional Client Services revenue of $3.68B up 2% Y/Y. FICC revenue of $1.93B up 20% - while conditions improved vs. three months ago, the environment remains challenging, says the bank.
- Compensation and Benefits of $3.33B down 13% Y/Y. The ratio of comp and benefits to revenue of 42% for H1 of 2016 is flat from the year-ago period. Total staff fell 5% in Q2.
- Tangible book value per share of $166.90 up 2% for the quarter.
- CC at 9:30 ET
- Previously: Goldman Sachs beats by $0.72, beats on revenue (July 19)
- GS is bouncing around in premarket action, but currently marginally higher.
Tue, Jul. 19, 7:45 AM
Tue, Jul. 19, 3:45 AM
- The Republican convention has left Wall Street banks on edge by embracing a proposal to reinstate Glass-Steagall, the banking separation rule which was dropped during the Clinton administration after a bipartisan effort to overturn it.
- The repeal is often cited as a cause of the financial crisis in 2008, even though two of the institutions at the core of the crisis, Lehman and Bear Stearns, were unaffected by the act's prohibition of combining investment and commercial banks.
- Related tickers: C, JPM, BAC, WFC, GS
Mon, Jul. 18, 5:30 PM
Fri, Jul. 15, 10:10 AM
- Wells Fargo ticks off 20 S&P 500 stocks with the most upside potential vs. consensus, and the 20 with the most downside risk vs. consensus.
- The list is compiled by comparing the midpoint of Wells Fargo Securities valuation ranges to consensus fair value estimates, volatility adjusting the percentage difference, and ranking the resulting score.
- Upside: AEE, BEN, CCL, DVA, EIX, ES, EXC, FTR, HUM, INTC, JNJ, LNT, PEG, PNW, SCG, T, WEC, WU, XEL, XOM.
- Downside: ANTM, C, CI, COF, EQT, FOXA, FSLR, GS, KIM, LH, MON, MSI, MYL, NVDA, NWSA, SLG, TIF, TSO, UA, WLTW.
Fri, Jul. 15, 9:47 AM
- Pelham Capital’s main hedge fund lost about 10% in June as the U.K.’s shock decision to exit the EU sparked turmoil in global equity markets, sources say.
- The losses in Pelham Long/Short Fund, which managed 3.8 billion euros ($4.2B) at the end of May, left it down about 9% in the first half of the year.
- The fund, one of the largest in Europe betting on rising and falling share values, had gained about 15% last year.
- Source: Bloomberg
Thu, Jul. 14, 8:19 AM
- Among the items boosting the quarter was a big rebound in markets revenue (which includes FICC) - up 23% Y/Y to $5.56B. The bank had previously unofficially guided to more than a 10% gain in trading revenue.
- Jamie Dimon has previously said that the myriad legal and regulatory issues pressuring the bank were beginning to dissipate, and this quarter JPMorgan reported a legal benefit of $430M vs. $291M of expenses a year ago.
- Energy? JPMorgan's Corporate & Investment bank booked a $235M credit loss vs. $50M a year ago, though $185M of that loss came from one customer. The commercial bank had a reserve release of $25M vs. needing to add $304M in Q1.
- Citigroup (NYSE:C) +2.6%, Bank of America (NYSE:BAC) +2.1%, Goldman Sachs (NYSE:GS) +2.25%, Morgan Stanley (NYSE:MS) +1.8%, Wells Fargo (NYSE:WFC) +1.4% premarket
Mon, Jul. 11, 1:17 PM
- A rebound in credit markets and elevated trading activity ahead of the Brexit vote are likely to both filter down to solid sequential revenue growth and profits for Morgan Stanley (MS +0.5%) and Goldman Sachs (GS +1.3%), says Credit Suisse.
- Both stocks are down more than 15% YTD, but Goldman could rally 20% from here, says the analyst team, noting Q2 was the best quarter for credit market asset prices since 2009.
Fri, Jul. 8, 10:49 AM
- Jose Manuel Barroso, the former president of the European Commission, has joined Goldman Sachs (GS +2.1%) as non-executive chairman for its international business.
- Barroso, the former prime minister of Portugal, served at the helm of the EC from 2004 to 2014.
- He'll act as an adviser to the wider group as well. "Jose Manuel brings immense insights and experience to Goldman Sachs, including a deep understanding of Europe," says a statement from Michael Sherwood and Richard Gnodde, co-chiefs of the company's international business.
Thu, Jun. 30, 2:43 PM
- While a "no objection" clearly would have been preferable for Morgan Stanley (MS +2.5%), says the team at JMP, $3.5B of buybacks is 41% more than last year and ahead of consensus expectations for $2.8B; the quarterly dividend of $0.20 is up by one-third.
- Together, they represent 87% of GAAP net income, and the bank has no boosted capital returns for four consecutive years. "We are encouraged that it continues to take steps forward as we view CCAR as a long-term process toward reaching optimal capital return."
- Goldman Sachs (GS +1.9%) historically does not disclose how much it's approved for, and this year is no different. The team isn't 100% certain progress was made, but Goldman did say it was approved for a hike in the dividend, and back-of-the-envelope calculations would lead one to believe the buyback was increased as well. They're estimating a total of about $6B in capital returns.
Thu, Jun. 30, 10:51 AM
- Dividend increases and boosted buybacks must already have been priced into the shares of the big banks, as share prices are showing little reaction to last night's capital plans.
- Citigroup (C -0.6%) is notably lower despite announcing more than a tripling in the dividend. Bank of America (BAC -0.8%) was more cautious with its payout boost, but is faring about the same. JPMorgan (JPM unch) chose not to lift its dividend, but did raise the buyback. Morgan Stanley (MS +0.6%) lifted both. Wells Fargo (WFC -0.5%) didn't give details other than saying its capital plan was approved; same for Goldman Sachs (GS +0.1%).
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF, KBE
Mon, Jun. 27, 6:55 AM
- Banks across the globe are taking another serious beating post-Brexit.
- The sector is getting battered on fears that fragile recoveries at many financial institutions will be delayed and that volatile markets could claim scalps.
- Several sources have also revealed that Italy is considering a €40B capital infusion into its banks.
- Banking stocks premarket: BCS -21%, RBS -15%, LYG -17%, DB -9%, UBS -6%, HSBC -5%, C -2%, MS -2%, BAC -2%, JPM -1%, WFC -1%, GS -1%.
- ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, SEF, FNCL, FXO, KBWB, QABA, RYF, FINU, KBWR, KRU, RWW, FINZ, KRS, XLFS
The Goldman Sachs Group, Inc. is global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. The... More
Industry: Diversified Investments
Country: United States
Other News & PR