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Tuesday, May 11, 2010

Quick note on GS

Have no time to really get into this, but a quick note on GS.

Goldman's trading accounts for approximately 76% of revenues. If proprietary trading needs to be separated, which I do not think it will be since one of our top regulators (Blair) spoke out against it very publicly, GS will probably divest the Asset Management and Prime Brokerage businesses. (Benefiting companies looking to get into the business, like MF.)

It makes no sense to divest their cash cow. But again, I still believe a common sense regulation will take hold of these banks, and trading will be limited due to capital requirements. (Which is a good thing!)

I also think Lloyd did a 180, and I am in his camp now. I do not want to see him go.

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