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.
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Contributors- Economic and Financial, Must Read, Taken Down
Spooky Halloween surprise from Goldman – Sober Look
by Walter Kurtz • • 0 Comments
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…
Contributors- Economic and Financial, Must Read, Taken Down
Credit/mezz funds create a major hole in the Volcker Rule – Sober Look
by Walter Kurtz • • 0 Comments
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…
Contributors- Economic and Financial, Must Read, Taken Down
Goldman: US faces $8 trillion budget shortfall through 2022
by Walter Kurtz • • 0 Comments
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…
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After Strong Start to 2012, IPO Market Sees Pullback, PwC Says – MarketWatch (press release)
by Newswires • • 0 Comments
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….
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Goldman cuts Morgan Stanley, ups J.P. Morgan – MarketWatch
by Newswires • • 0 Comments
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…
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ANALYSIS-Morgan Stanley faces Facebook fallout, limits damage – Reuters
by Newswires • • 0 Comments
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…
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Morgan Stanley cut, JP Morgan upgraded – MarketWatch
by Newswires • • 0 Comments
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…
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Goldman adds JPMorgan to conviction buy list – Reuters
by Newswires • • 0 Comments
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 …
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Corzine’s first sin was to bet on MF Global – FT.com
by Newswires • • 0 Comments
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 when Jon Corzine, its former chief executive, started trading in European government bonds? Was it when MF Global first bent the rules on using client funds? My vote, after reading…
