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Dec. 3, 2015, 2:24 AM
- Eight of the biggest U.S. banks have been downgraded by Standard & Poor's, following a rule approved by the Fed in October that will require large institutions to hold a stockpile of debt that can be converted into equity if they falter.
- "We now consider the likelihood that the U.S. government would provide extraordinary support to its banking system to be uncertain," S&P said in the statement.
- Firms affected include JPMorgan (NYSE:JPM), BofA (NYSE:BAC), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), BNY Mellon (NYSE:BK) and State Street (NYSE:STT).
Nov. 20, 2015, 12:48 PM
- The credit card sector is notable of late for strong asset growth, says analyst Eric Wasserstrom, but it's not resulting in net income growth expansion. RIsing marketing and rewards costs combining with higher provisions are to blame, he says, and higher interest rates will boost funding costs and constrain margins.
- Wasserstrom and team see net income growth for Capital One (NYSE:COF) of just 0-2% in 2016-17, and for Discover (NYSE:DFS) of 1-2%, with all of this coming from share repurchases.
- He's got a better outlook for Synchrony Financial (NYSE:SYF), which is his pick in the card space. Turning elsewhere, Goldman Sachs (NYSE:GS) - levered to the improving corporate M&A cycle - is his best idea.
Nov. 16, 2015, 8:02 AM
- Facility management group GCA Services provides janitors and cleaners to schools, airports, warehouses, power stations, rental car locations, and the like. The private equity arm of Goldman Sachs (NYSE:GS) and Thomas H. Lee will have an equal stake in a group buying GCA from Blackstone (NYSE:BX) for about $1B, reports Reuters.
- GCA gets most of its business from the education sector and could benefit as more school districts outsource facility management (currently less than 20% is outsourced).
- Blackstone acquired GCA from another P-E firm in 2012 for about $600M.
Nov. 12, 2015, 3:25 PM
- Among the managing directors - next stop up would be partner - are 96 appointed to the banking division and 103 to the securities unit. One quarter of those promoted are women, the highest-ever ratio.
- Goldman last named a new MD class in 2013, when it selected 280 for the role, and then decided to do the promotions every other year.
Oct. 28, 2015, 9:26 AM
- Goldman Sachs' (NYSE:GS) Lagoon is a collection of software giving employees secure access to business applications on their mobile phones as well as a number of Orbit apps providing email and other services remotely.
- The bank developed Lagoon about four years ago, and will now spin it out into a new entity to be managed and majority-owned by Synchronoss Technologies. Goldman will own a minority stake.
- Goldman CEO Lloyd Blankfein likes to say his company is as much a tech shop as it is an investment bank, and Chief Information Officer Martin Chavez has been trying to burnish his division's bona fides with Silicon Valley (Goldman has 11K engineers).
Oct. 26, 2015, 9:38 AM| Oct. 26, 2015, 9:38 AM | 4 Comments
Oct. 21, 2015, 3:43 PM
- Engineers, data scientists, operations staff, and customer service professionals are among those Goldman Sachs (NYSE:GS) is seeking resumes for as it builds up its online lending business, reports Reuters.
- A number of key managers have already been brought on, including Citi credit card executive David Stark Jockey International's Dustin Cohn, and DIscover's Harit Talwar (who will head the operation).
Oct. 16, 2015, 3:43 PM
- A cynic might say the group deserves to be promoted to management, but roughly 20 analysts globally have been shown the door at Goldman Sachs (NYSE:GS) after they were discovered cheating on internal training tests, reports Bloomberg.
- It must have really been egregious, because it's fairly common practice for employees to "get assistance" with these sorts of tasks, especially since it's job performance, not how one does on tests, that determine a banker's career path.
- Of course, it's a new era of regulatory scrutiny for banks, and employment lawyers in the U.K. say new rules intended to improve internal oversight could trigger a wave of unfair-dismissal claims.
Oct. 16, 2015, 10:26 AM
- “When everyone says, `Man, I’m taking down risks,’ nobody calls Goldman,” says UBS analyst Brennan Hawken. "When risk appetites are good and hedge funds are doing well, then Goldman’s going to do well.”
- Source: WSJ
- All of the Wall Street banks reported trading slumps in Q3 (Morgan Stanley has yet to report), but none more than Goldman Sachs (NYSE:GS), which saw profits drop 36% in the quarter, led by a 33% decline in FICC revenue - 10-22 percentage points more than that of peers.
- Goldman is staying the course, On a conference call with his managing directors, CEO Lloyd Blankfein reminded the group that FICC had carried Goldman in times when other lines of business struggled.
- Coming into the office during the two-week breaks between treatments for his curable form of lymphoma, Blankfein told them both he and Goldman would have better quarters ahead.
- As for the stock, its 15% or so decline since late June may have already discounted the lame quarter - it's ahead nicely since earnings were released yesterday morning.
- Previously: Goldman goes green after earnings miss (Oct. 15)
Oct. 15, 2015, 11:05 AM
- "Investors won't like the quarter," says Evercore's Glenn Schorr, but strong capital ratios, increasing buybacks, decent book value growth, and lots of compensation leverage will help bide time for better markets.
- Reiterating his Buy recommendation, Citigroup's Keith Horowitz says revenue trends looked good despite weak markets, and expense trends were better than expected.
- Comp and benefits expense of $2.35B was down 16% from one year ago, and the comp ratio dipped to 34% from 42% in H1. Barclays Jason Goldberg had hoped for a drop to 33%. Goldman (GS +1.2%) CFO Harvey Schwartz expects a full-year result of about 40% (comp expense often goes up in Q4).
- WSJ's Moneybeat
- Previously: Goldman Sachs slips after reporting sluggish quarter (Oct. 15)
- Previously: Goldman Sachs misses by $0.01, misses on revenue (Oct. 15)
Oct. 15, 2015, 7:46 AM
- Q3 earnings of $1.43B or $2.90 per share vs. $4.57 one year ago.
- ROE of 7% for the quarter, 8.8% for the first nine months of 2015. Tangible book value per share of $162.11. CET 1 ratio of 12.4%.
- CEO Lloyd Blankfein: “We experienced lower levels of activity and declining asset prices during the quarter, reflecting renewed concerns about global economic growth."
- Investment banking revenues of $1.56B up 6% from a year ago, but down 23% from Q2. Financial advisory revenues of $809M up 36% from a year ago thanks to the M&A boom. Underwriting revenues of $747M down 14%.
- Institutional client services revenues of $3.21B fell 15% Y/Y, and 11% Q/Q. FICC revenue of $1.46B fell 33% Y/Y, or 27% once a special gain from last year is excluded. Equities revenue of $1.75B gained 9%.
- Investing & Lending revenues of $670M fell 60% Y/Y, impacted by declining markets late in the quarter.
- Investment management net revenues of $1.42B fell 3% Y/Y and 14% Q/Q.
- Operating expenses of $4.82B fell 5% Y/Y and 34% Q/Q/ Compensation and benefits of $2.35B fell 16% Y/Y. Comp and benefits to revenue ratio of 40% for first nine months or year, flat from last year.
- Conference call at 9:30 ET
- Previously: Goldman Sachs misses by $0.01, misses on revenue (Oct. 15)
- GS -2% premarket
Oct. 15, 2015, 7:39 AM
- Goldman Sachs (NYSE:GS): Q3 EPS of $2.90 misses by $0.01.
- Revenue of $6.86B (-18.2% Y/Y) misses by $280M.
Oct. 14, 2015, 5:30 PM
Oct. 14, 2015, 2:47 AM
- Goldman Sachs (NYSE:GS) may be in hot water over its advisory role to Malaysia's troubled sovereign wealth fund - 1Malaysia Developmment Berhad.
- Citing unnamed sources, the WSJ reports the bank received more than $350M for consultant work related to the fund, which is currently under investigation for billions of dollars in missing money.
- The FBI and Justice Department have already begun examining Goldman's role in several 1MDB transactions.
Oct. 12, 2015, 8:42 AM
Oct. 7, 2015, 12:52 PM
- Liz Beshel Robinson, 46, is leaving at the end of the year, and will be replaced by Robin Vince, who is currently global head of the operations division.
- A protege of former CFO David Viniar, Robinson had been considered a candidate to replace him, though the job ultimately went to Harvey Schwartz. Her husband was head of strategy at Goldman's (NYSE:GS) investment-banking unit before leaving in 2014.
- Robinson had been treasurer since 2005 and was there for Goldman's conversion to a BHC amid the financial crisis.
- Source: Bloomberg
Goldman Sachs Group Inc is a investment banking, securities and investment management firm. Its segments include Investment Banking, Trading and Principal Investments, Asset Management and Securities Services.
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