Breakingviews

Goldman and rivals’ pay cut may have bright side

January 20, 2016

Staff compensation at the Wall Street firm is 8 pct less on average than in 2014 and down almost 11 pct at Morgan Stanley. JPMorgan workers fared better but still took a hit. With share values way down, though, those paid in stock may get a great deal – barring another crash.

Goldman’s near-wipeout of Q4 profit met with shrug

January 15, 2016

A tentative $5 bln mortgage settlement comes more than 10 years after the Wall Street bank’s first missteps and more than five since it paid the SEC $550 mln. The deal ought to close the book on crisis-era fines. Even so, the lack of reaction shows how numb investors have become.

Cox: Cruz capitalism gives off a whiff of cronyism

January 14, 2016

U.S. presidential wannabe Ted Cruz has attacked bank bailouts and special-interest policies, from Ex-Im Bank to ethanol subsidies. Now he concedes he used a Goldman Sachs loan to fund a 2012 Senate campaign and didn’t disclose it. It bruises his carefully crafted populist image.

Hadas: The BRICs are dead. Long live the BRICs!

By Edward Hadas
November 11, 2015

Goldman Sachs coined the acronym in the 2000s when Brazil, Russia, India and China promised the greatest economic shift in a century. Now Goldman is closing its flailing BRIC fund. But poor countries are still gaining on rich ones, and their base for growth is getting more solid.

Fed feeds Goldman conspiracy-theory machine

November 10, 2015

Hiring former dealmaker Neel Kashkari to run Minneapolis means the investment bank’s alumni are in charge of three of the central bank’s 12 regional branches. It’s great fodder for those seeking evidence of a system in thrall to Wall Street and Goldman. The reality is less juicy.

TPG reaches for some vintage Goldman fairy dust

October 29, 2015

The buyout shop hired the bank’s former president, Jon Winkelried, to be co-CEO. That suggests no one internal was better suited than a man who rode off mid-financial crisis for a cowboy’s life. The Goldman imprimatur may help with, say, an IPO but it doesn’t always stick.

Goldman thwacking marks revolving-door reckoning

October 28, 2015

The bank led by Lloyd Blankfein will pay $50 mln for not monitoring an employee’s too-cozy relationship with the NY Fed, his former employer. It’s a paltry fine, but Goldman admitted fault - and it drives home the message that D.C.-to-Wall Street transfers bear closer scrutiny.

Fake Goldman Sachs belies a real China strength

August 27, 2015

The U.S. investment bank joins a long list of counterfeits that includes Apple stores, police stations and British villages. They’re easy to mock, but also veil a broader readiness to bend rules in search of profit. Properly channelled, that ingenuity and pluck could be powerful.

Malaysia mess puts Goldman Sachs in the hot seat

August 6, 2015

The Wall Street firm raised lots of money very quickly for state-backed 1MDB. Though the deals earned Goldman outsized fees, a brewing political scandal involving the fund leaves the bank exposed and raises questions about its processes for vetting reputational risk.

Goldman for once may miss mega-bank sprawl

July 16, 2015

Legal costs whacked the Wall Street firm’s Q2 earnings. More worrying was the far worse showing than rivals in fixed-income trading. Broader institutions such as Citi, BofA and JPMorgan gain a cushion from areas like treasury services. Goldman’s focus isn’t always an advantage.