Goldman Sachs Group Inc.NYSE
Thu, Sep. 29, 3:35 PM
- Deutsche Bank's (DB -6.5%) steep tumble has stabilized a bit over the past couple of hours, but DoubleLine bond guru Jeffrey Gundlach says it's got a ways left to go and to stay away.
- The company is hard to analyze and the prospect of a government bailout, he tells Reuters. The market sell-off "doesn't feel like" it's over by any means.
- "The market is going to push down Deutsche Bank until there is some recognition of support," he says.
- Elsewhere in sliding financials today: BAC -1.1%; C -2.1%; JPM -1.4%; GS -2.7%; MS -2.2%; OTCPK:SCGLY -3.8%.
Thu, Sep. 29, 1:30 PM
- A report that a number of hedge funds are bailing out of their Deutsche Bank exposure has sent that stock sharply lower in the last few minutes, and the move is dragging the big U.S. banks, and in turn, the major averages.
- Deutsche is now lower by more than 7%. Bank of America (BAC -1.2%), Citigroup (C -1.6%), JPMorgan (JPM -1.2%), Goldman Sachs (GS -2.1%), Morgan Stanley (MS -1.9%). The KBE and KRE are each off 1.1%.
- The Dow (DIA -0.9%), S&P 500 (SPY -0.8%), and Nasdaq (QQQ -0.6%).
Wed, Sep. 28, 9:32 AM
- "Large banks are going to be forced to take on more capital," says Dick Bove. "It will make the cost of funding more, not less, expensive. It will reduce the appeal for investors to put money at risk in the banking system."
- Bove is commenting on a weekend announcement from Fed Governor Daniel Tarullo promising future stress tests will be geared to demanding even higher cash buffers for banks. Set to take effect next year, the new rule could raise capital requirements for the largest banks by 3 or 4 percentage points, writes Jeff Cox at CNBC.
- Interested parties: BAC, C, WFC, JPM, GS, MS
- There's good news though, as those lenders with less than $250B in assets won't be subject to the same standards. FBR's Edward Mills calls it a "significant positive" for regionals, which now have more certainly on the process, reduced regulatory expenses, and thus the ability to return more capital to owners.
- Interested parties: RF, ZION, CMA, KEY, FITB, STI, NYCB, HBAN, PNC, BBT, MTB
- ETFs: KRE, KBE, IAT, KBWB, QABA, KBWR, KRU, PSCF, KRS, WDRW, DPST
Tue, Sep. 27, 7:56 AM
- Based in Singapore, Michael Smith is the head of Goldman Sachs' (NYSE:GS) investment banking division in Southeast Asia, and has been with the bank since 2006. He's expected to depart later this year, according to the report.
- Smith's expected exit is not part of the downsizing of Goldman's Asian team in which it's been reported the bank will be cutting nearly 30% of its 300 investment banking jobs in the region.
Fri, Sep. 23, 1:02 PM
- In an acknowledgement of the major slowdown in activity in the region, Goldman Sachs (NYSE:GS) is cutting nearly 30% of its 300 investment banking jobs in ex-Japan Asia, reports Reuters. Most of the cuts will take place in Hong Kong, Singapore, and China, where the bank's main Asian offices are located.
- The total value of M&A deals in Asia-Pacific this year of $572.9B is down from $745.7B during the same period in 2015.
Fri, Sep. 23, 12:05 PM
- The proposed rule would make it more difficult for banks to be involved with physical commodities by raising capital requirements. Further, banks would be prohibited from activities involving power plants, and owning or storing copper.
- The Fed today begins a 90-day period of accepting public comment.
- Banks like Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) have relied on grandfather clauses to engage in physical commodity businesses not allowed for other lenders, while Bank of America (NYSE:BAC), Citigroup (NYSE:C), and JPMorgan (NYSE:JPM) remain somewhat involved in commodity trading and energy tolling activities.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
Tue, Sep. 20, 7:48 AM
- Since Goldman Sachs (NYSE:GS) began offering ETFs one year ago, it's already brought in $2.4B of assets, making their funds among the most successful product launches in ETF history.
- JPMorgan (NYSE:JPM) - which entered the ETF business two years ago - has garnered just over $800M, despite the earlier start and more successful performance record.
- "Goldman did quite a bit of work priming the pump, pre-vetting its strategies with institutional clients," says Morningstar's Ben Johnson. "This is a marathon, not a sprint," says JPMorgan's ETF boss Bob Deutsch.
- Helping Goldman are low prices - its flagship fund, the Active Beta U.S. Large Cap Equity ETF, charges just nine basis points. Then there's the Goldman name: "They have a real panache if you are some RIA in Iowa who has never had a relationship with Goldman at all,” says FactSet's David Nadig, who imagines said RIA going to clients and saying, "We can now get access to Goldman’s quant expertise for the same price as most of the index funds we look at at Vanguard."
- Source: Bloomberg
Tue, Sep. 13, 5:42 AM
- Building its U.S. consumer bank, Goldman Sachs (NYSE:GS) has established a team to put its deposits to work on Wall Street, sources told Reuters.
- The existence of the team, which has not been previously reported, was set up in mid-2015 and is formally known as the institutional lending group.
- Lately, it has ramped up activities as Goldman looks to do more lending broadly.
Mon, Sep. 12, 3:06 PM
- The Goldman Sachs Treasury Access 0-1 Year ETF (GBIL) began trading last week with $20M in AUM. The cost for the "ultrashort" duration ETF is 0.14%.
- The bank launched its first ETFs about a year ago, but this is its first fixed-income offering.
Thu, Sep. 8, 3:27 PM
- Part of the Dodd-Frank law requires regulators to submit fixes to potential risks not covered by the post-crisis rules aimed at cutting bank certain trading and investments.
- As part of the Fed's contribution, it is recommending Congress repeal banks' merchant banking powers, and their ability to operate in the physical commodities business. The OCC and FDIC are yet to be heard from.
- Goldman Sachs (NYSE:GS) could have most to lose as that company booked $1.2B in revenue in H1 in the division housing its merchant banking business.
Wed, Sep. 7, 4:29 AM
- Goldman Sachs (NYSE:GS) has banned its high-ranking employees from contributing money to certain campaigns including that of U.S. Republican presidential candidate Donald Trump, according to a report in Politico.
- The policy change is meant to "prevent inadvertently violating pay-to-play rules," but don't prohibit top brass from donating to the Clinton ticket.
- A spokesman emphasized that the impact on the presidential election is entirely coincidental.
Thu, Sep. 1, 2:36 PM
- The Fed stress tests are the centerpiece of post-crisis bank regulatory reform, and that the banks would even consider challenging a bureaucracy that's not in the habit of being challenged is a shocker. The WSJ, however, reports bank trade groups and industry advisers are debating just that, but say talks are still in an early stage.
- Fans of Dodd-Frank will naturally argue the stress tests have made the banks far safer, but at what expense to investors? A main area of contention is the opacity of the tests, says the report, as well as the ability of regulators to block returns for subjective reasons (such as challenging them?).
- Perhaps lenders are feeling their oats following MetLife's successful challenge of its SIFI designation. If the insurer can take on Uncle Sam and win, why not the banks?
- Interested parties are too numerous to name, but include: Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup (NYSE:C), JPMorgan (NYSE:JPM).
- ETFs: KBE, KRE
Thu, Sep. 1, 4:09 AM
- Despite an increasing regulatory burden and lackluster share performance, the U.S. banking industry just logged its most profitable quarter ever, according to figures from SNL Financial and S&P Global Market Intelligence.
- Earnings for the three-month period totaled $43.6B, compared to the $43.01B in Q2 of 2015, a 1.4% beat.
- On a sequential basis, the April-to-June period topped the previous quarter by $4.56B, an 11.7% rise.
- Related tickers: JPM, C, BAC, WFC, GS, MS, USB, BK, STT, PNC, COF
Wed, Aug. 31, 9:23 AM
- Unlike a number of other big banks which have announced big cuts in their fxied-income units, Goldman Sachs (NYSE:GS) has remained firm in its commitment to the slowing debt-trading business. But, write Lisa Abramowicz and Lionel Laurent, this doesn't necessarily mean a commitment to the number of people in the operation. The bank, they say, is busily preparing a future in which machines will handle much of the work.
- While electronic trading in corporate bonds isn't yet too big of a deal, it's market share has nearly doubled in two years. One example of how Goldman is responding is the "Goldman Sachs Algorithm," which allows investors to trade U.S. corporate bonds without having to communicate with a human.
- The leader in this field is MarketAxess (NASDAQ:MKTX), and it's price chart resembles a rocket ship launch.
Tue, Aug. 30, 7:14 AM
Tue, Aug. 30, 2:21 AM
- More than 76,000 people have signed a petition demanding former European Commission President Jose Manuel Barroso be stripped of his pension after taking a job at Goldman Sachs (NYSE:GS).
- Organizers plan to present it to current leaders of the EU institutions at the end of September.
- Critics claim the role is inappropriate given Goldman's role in the U.S. subprime crisis and Greek debt talks.