And if that doesn’t pan out, there’s always a job waiting as head of Treasury, the Fed, or Greece.
Goldman Sachs Group Inc. (GS), the fifth- biggest U.S. bank, is preparing for a faster global economic rebound than most forecasters expect, Chairman and Chief Executive Officer Lloyd C. Blankfein said.
“I don’t think that we can conclude that this slowdown is secular rather than cyclical change,” Blankfein, 57, said today at an investor conference in New York hosted by Bank of America Corp. (BAC)’s Merrill Lynch unit. “The world will snap back and it will be a surprise and it will be faster than people think. (This in the midst of simultaneous plunges into recession by Europe and Asia. Dude is smoking some serious crack.) I don’t know when that will be and we will gear ourselves accordingly.”
“We’re managing our costs, obviously, but we’re not thinking necessarily that there’s such a radical, structural change,” he said. “We want to be in shape for the upturn.”
Blankfein said he expects Goldman Sachs’s clients and other “end-users” of investment-banking services to inform regulators of their concerns about the Volcker rule, which limits banks from trading on their own behalf and from investing in private-equity and hedge funds. Clients are concerned the regulations could reduce market liquidity and make trading more expensive, he said.
“As people weigh the costs to themselves, I think the intensity will rise,” he said. “I think user groups will chime in and make their interests known. In fact I’m sure of it.”