About a year ago we discussed the argument made by Goldman’s lawyers that under the Volcker rule, banks should be allowed to invest in credit funds (see post). The rationale is that if banks can lend to companies directly, why can’t they invest in funds who make the same types of loans? In particular, Goldman was defending its lucrative mezzanine fund business which provides junior capital to companies. Goldman and other banks compete with private equity firms such as Blackstone in managing credit portfolios for clients.
The Goldman Sachs Analyst Index (GSAI) hit a new post-recession low this month. The index is a composite of corporate outlook by industry from Goldman’s company research. In the past, the index generally fell in line with other economic activity indice…
There is a hole in the Volcker Rule that banks are trying exploit. But before jumping to conclusions, let’s walk through the following logic. The Volcker Rule prohibits significant proprietary trading and limits banks’ investments in hedge funds and pr…
Goldman’s latest analysis of the US budget shows a staggering gap of $8 trillion in the next 10 years. This materially diverges from the latest White House projection as well as from the CBO’s “baseline”.GS: – Through 2022, we forecast a cumulati…
After Strong Start to 2012, IPO Market Sees Pullback, PwC SaysMarketWatch (press release)Morgan Stanley and Goldman make bullish cases as Facebook IPO … Including the $16 billion in proceeds from the Facebook IPO, total IPO proceeds raised in …U.S….
euronewsGoldman cuts Morgan Stanley, ups J.P. MorganMarketWatch… recent testimony in Congress from J.P. Morgan chief Jamie Dimon removed some concern about a drag on the shares from the recent high-profile trading loss.Morgan Stanley's Derivative…
BusinessLIVEANALYSIS-Morgan Stanley faces Facebook fallout, limits damageReutersRuckus hired Goldman to lead IPO after Facebook. * Some want all underwriters to play active roles. * Firms keep MS in lead IPO role despite Facebook …Analysis: Morgan St…
Wall Street Journal (blog)Morgan Stanley cut, JP Morgan upgradedMarketWatchThe bank disclosed the loss in early May, saying that it amounted to more than $2 billion but that amount may have risen in recent weeks. J.P. Morgan is …Goldman adds JPMorgan…
Goldman adds JPMorgan to conviction buy listReutersThe 15 percent decline in JPMorgan share price since the largest U.S. lender by assets announced trading losses at its chief investment office has been "drastic …
Whenever financial disaster strikes, it is tempting to try to identify the moment when it became inevitable. In the case of MF Global, was it…
