No One Could Have Anticipated…
August 12th, 2010at 07:07am Posted by Eli
Come on, did anyone really think that Congress would pass a financial reform bill that hurt Goldman Sachs?
As Wall Street scrambles to find the best and most profitable way to operate under the new financial reform law, Goldman Sachs Group Inc. — the firm that was expected to suffer the most under the legislation — could emerge practically unscathed.
(…)
[T]op Goldman executives privately advised analysts that the bank did not expect the reform measure to cost it any revenue.
“The statement was perhaps surprising in its level of conviction,” Bank of America Merrill Lynch analyst Guy Moszkowski wrote in a note to clients, “but we’ve learned to take such judgments from GS very seriously.”
(…)
The law, signed by President Obama in July, could force the trading of derivatives, a big business line for Goldman, onto exchanges. Regulators might allow the trading of some contracts over the counter but require that the resulting payments be handled by a clearinghouse.
Either way, “we think we are well positioned to be a market leader under the new rules,” said Jack McCabe, co-head of Goldman’s derivatives clearing service business.
Richard Bove, a bank analyst at Rochdale Securities, said he had changed his view of the law’s effect on Goldman.
“I thought this company was going to be really harmed by this bill; now I’ve figured out that it’s not going to happen,” he said. “They should win big here.”
It’s not Matt Drudge who rules our world. It’s Goldman Sachs.
Entry Filed under: Corruption/Cronyism,Democrats,Economy,Politics,Wankers
