Goldman Sags


BY TRADITION, Goldman Sachs makes risky financial wagers and stays icy cool under pressure. A bad trade on Treasury bonds in 1986 almost killed it, but was eventually cauterised. The firm’s “big short” in early 2007, when it bet that subprime securities would tumble, helped it to book profits of $14bn in 2008-09 and to perform relatively well during the worst financial crisis for 80 years. Goldman also values candour, at least inside the firm. In this spirit it is time to acknowledge that the bank’s strategic direction is beginning to feel like a bum trade. Its defence is that it is no worse than its group of peers, but being average on Wall Street is a mug’s game and the antithesis of the Goldman way.

While outsiders think that Goldman’s alumni run the world, on Wall Street the firm’s aura has dimmed. Rival banks view it with indifference, not awe. After shining in the years after the crisis, since 2012 its total return (share price gain plus dividends) has lagged behind the…

Комментариев нет

Добавить комментарий

Этот сайт использует Akismet для борьбы со спамом. Узнайте как обрабатываются ваши данные комментариев.

Google can no longer count on political goodwill at home

“WE USED to be so dismissed,” says Jeremy Stoppelman, the boss of Yelp, an online-review site which has waged a six-year-long battle against Google over how the online giant ranks its search results. Now American regulators are taking concerns about Google more seriously. On November 13th, Josh Hawley, Missouri’s attorney-general, …

How tech giants are ruled by control freaks

THIS month Schumpeter visited the Barnes Foundation, a gallery in Philadelphia full of paintings by Picasso, Matisse and Van Gogh. Albert Barnes, born in 1872, is notable for two things. He made a fortune from an antiseptic that cured gonorrhoea. And he stipulated exactly how his art collection should be …

The last media mogul stuns his industry with talk of selling

THE only media mogul still bestriding his industry in old-fashioned style is used to being a predator rather than prey, a builder of empires, not a dismantler of them. So Rupert Murdoch’s reported willingness to sell off much of 21st Century Fox, whether to a rival such as Disney or …