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☆ What’s going on with China’s shadow banking system?
▼ + stars: | 2023-09-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

The world’s second-largest economy is grappling with growing financial distress, which means big problems for the nation’s nearly $3 trillion shadow banking industry. What’s happening: Shadow lenders, including trust firms, operate outside of the formal banking system. That’s because shadow banks are not just a problem in China. The key concern, said Towes, is whether Western organizations have loaned to shadow banks and are now vulnerable. Production cuts by OPEC+, which produces 40% of the world’s crude oil, have helped send oil prices higher in recent months, a development that could have repercussions for inflation and interest rates.

Persons: they’ve, ”, Phillip Toews, “ we’ve, Toews, that’s, Goldman Sachs, Matt Egan, That’s, It’s, “, Jan Hatzius, ” Hatzius, —, CNN’s Hanna Ziady, Brent, ” Stephen Innes Organizations: CNN Business, Bell, New York CNN, Asset Management, US, IMF, Global, Federal Reserve, West Texas, Organization of, Petroleum, Saudi Ministry of Energy Locations: New York, China, Beijing, Europe, Saudi Arabia, Russia, OPEC

The strong labor market is propping up U.S. households. “Real disposable income looks set to reaccelerate in 2024 on the back of continued solid job growth and rising real wages,” Jan Hatzius, Goldman’s chief economist, wrote in a client note. On Friday, the Labor Department reported that wage gains had cooled in August, but real wages, adjusted for inflation, are trending higher. In March, the bank raised its recession odds to 35 percent in the wake of Silicon Valley Bank’s collapse and worries that contagion could hurt other lenders. Poll numbers released on Monday by The Wall Street Journal showed that President Biden’s popularity is still sagging, partly because of his track record on the economy.

Persons: Goldman Sachs, ” Jan Hatzius, Goldman Organizations: Labor Department, Bloomberg, Wall Street Locations: United States, U.S, Bidenomics

☆ Goldman Sachs cuts US recession odds to 15% as economic optimism grows
▼ + stars: | 2023-09-05 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

New York CNN —Goldman Sachs is increasingly confident that the US economy will stick the soft landing that many thought was nearly impossible to pull off. In a research report published Monday night, Goldman Sachs lowered its estimated chance of a US recession over the next 12 months to just 15%. Goldman Sachs pointed to “solid” job growth and rising real (inflation-adjusted) wages that should allow real disposable income to “reaccelerate” next year. The August jobs report, released late last week, showed that hiring remains solid, though it has slowed from the blockbuster pace of earlier in the post-pandemic recovery. “The August jobs report couldn’t be much better,” Moody’s Analytics chief economist Mark Zandi wrote Friday on X, formerly known as Twitter.

Persons: New York CNN — Goldman Sachs, Goldman Sachs, That’s, It’s, ”, “, Jan Hatzius, ” Hatzius, Hatzius, reaccelerate ”, Mark Zandi Organizations: New, New York CNN, Federal Reserve, Wall Street, Bloomberg, Atlanta Locations: New York

☆ Goldman’s list of hedge fund favorite stocks is beating the market. Here’s what’s in it
▼ + stars: | 2023-08-24 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

A group of hedge funds' favorite stocks trounced the broader market, thanks to the strength of mega-cap tech, according to Goldman Sachs. It then compiled a basket of the most popular long positions, dubbed Goldman's Hedge Fund VIP basket, comprising 50 stocks that most frequently appear among the largest 10 holdings of hedge funds. The VIP basket has returned 22% this year as of mid-August, outperforming the S & P 500 , which was up 15% during the same period. The largest tech stocks — Amazon , Microsoft , Google parent Alphabet and Meta Platforms — remain the most popular hedge fund long positions at the end of June. Big artificial intelligence winner Nvidia was the fifth-most popular stock among hedge funds.

Persons: Goldman Sachs, Goldman, Uber, — CNBC's Michael Bloom Organizations: Microsoft, Google, Nvidia, Activision, Apple, Horizon Therapeutics, Visa

One area looks safe from the dreaded “R” word: the housing market. Goldman predicts home prices will rise even more next year, in part because housing supply is so constrained. Forecasts of a prolonged housing market slump haven’t materialized. Those moves have helped push mortgage rates to a 22-year high. “Home buyers have demonstrated behavior that, in our view, reflects unsustainable adaptations to elevated mortgage rates,” the Goldman Sachs strategists Roger Ashworth and Vinay Viswanathan wrote in a research note.

Persons: Goldman Sachs, Goldman, Bankrate, Roger Ashworth, Vinay Viswanathan Organizations: Fed Locations: U.S

☆ Goldman’s C.E.O. Is Stuck, Without a Clear Lifeline
▼ + stars: | 2023-08-11 | by ( Rob Copeland | More About Rob Copeland | ) www.nytimes.com time to read: +1 min

Mr. Solomon had not been expecting it. He made it clear to Mr. Solomon that his patience was waning, according to three people briefed on the conversation. Mr. Solomon, politely but firmly, turned Mr. Blankfein down. It has been a slog for Mr. Solomon. It isn’t just Mr. Blankfein who is fed up.

Persons: Lloyd Blankfein, David Solomon, Goldman Sachs, Solomon, Blankfein, Solomon’s, Goldman

Goldman makes a big executive changeThe man who has been perhaps the most influential executive inside Goldman Sachs for more than a generation has begun to hand over some of his responsibilities. John Rogers, who over his quarter-century at the Wall Street bank has been known as a board and C.E.O. whisperer, will give his role as chief of staff to Russell Horwitz, his onetime deputy, Andrew and DealBook’s Lauren Hirsch are first to report. Rogers has an outsized influence and an intentionally understated public profile. He also wielded considerable influence outside the firm, helping Paulson become Treasury secretary in 2006.

Persons: Goldman, Goldman Sachs, John Rogers, Russell Horwitz, Andrew, DealBook’s Lauren Hirsch, Rogers, David Solomon, Reagan, George H.W, Bush, ” Rogers, Jon Corzine, Hank Paulson, Lloyd Blankfein, Solomon, Paulson Organizations: Goldman Locations: Washington

☆ ‘Let’s Call Her Patty’ Review: Unseen Depths of an Uptown Matriarch
▼ + stars: | 2023-08-01 | by ( Naveen Kumar | ) www.nytimes.com time to read: +2 min

Patty’s maternal relationships with Cecile and Sammy are the play’s sources of conflict (Patty’s offstage husband, Hal, we’re told, is “fine”). The matriarch is little more than an amalgam of stereotypes; that there is truth to them is hardly a revelation. But the play does little to question or disrupt the preconceived notions it assumes New York audiences will have about “an Upper West Side lady” like Patty. If this is a character study, Patty’s pungent, messy center is largely withheld from view. Unfortunately, Cecile is kept at arm’s length from a story in which she seems to have the most compelling inner life.

Persons: Cecile, Sammy, Hal, we’re, Patty, she’s, “, Perlman, Margot Bordelon, Goldman’s Cecile Locations: York

☆ An Exodus of Talent Is Imperiling Goldman’s Overhaul
▼ + stars: | 2023-07-28 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/an-exodus-of-talent-is-imperiling-goldmans-overhaul-f8225df9

Persons: Dow Jones

☆ These 5 stocks are on Goldman’s ‘conviction buy’ list — and it gives one more than 50% upside
▼ + stars: | 2023-07-24 | by ( Weizhen Tan | ) www.cnbc.com time to read: +4 min

The Wall Street bank's Conviction List comprises its top buy-rated stocks that it expects to outperform. Goldman gave Baidu's U.S.-listed shares a 12-month price target of $197, and its Hong Kong-listed shares a price target of 193 Hong Kong dollars. Shift4 Payments American payment processing company Shift4 Payments is also on Goldman's conviction list. "Its refreshed, modern restaurant POS [point of sale] platform and new verticals should drive market share growth," Goldman analysts wrote. Goldman gave Warner Bros Discovery, which is on its conviction list, a price target of $20, or potentially more than 50% upside.

Persons: Goldman Sachs, Baidu Goldman, Goldman, Johnson, Warner Bros Discovery Goldman, WBD, Solar Goldman, — CNBC's Michael Bloom Organizations: Baidu, Baidu's U.S, Hong, Johnson Controls, Warner Bros Discovery Locations: China, Hong Kong

“Obviously, the little girls that are going to see Barbie, none of them are going to have any idea what those dashes mean,” Mr. Cruz told Fox News. “This is really designed for the eyes of the Chinese censors, and they’re trying to kiss up to the Chinese Communist Party because they want to make money selling the movie.”The response on the right is not a one-off. For a generation of conservative personalities, weaned on Andrew Breitbart’s much-cited observation that “politics is downstream of culture,” Hollywood and other ostensibly liberal bastions are to be confronted head-on, lest their leanings ensnare young voters without a fight. Recent years have provided ample evidence, some on the right say, for a “go woke, go broke” view that progressivism is bad business. (Of course, there is no way to trace exactly what determines any movie’s success or failure, and many observers adhere to the screenwriter William Goldman’s axiom: “Nobody knows anything.”)“Barbie” cannot be said to have gone broke.

Persons: Mr, Cruz, Andrew Breitbart’s, ensnare, ”, Mario, Halle Bailey, ’, William Goldman’s, Barbie, Rich Cromwell, ” Kyle Smith Organizations: Fox News, Chinese Communist Party, Mario Bros, Black, Wall Street

☆ Kim Kardashian's Skims may be the hero the IPO market needs
▼ + stars: | 2023-07-20 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

This latest round was led by Wellington Management, a firm known for taking companies public. Jens Grede, Skim’s CEO, recently told Dealbook that stock investors have shown an increased interest in consumer-oriented businesses like Skims and that an IPO is something the company wants. “At some point in the future, Skims deserves to be a public company,” he said. If a Skims IPO were to succeed, “companies, CFOs and investors in general will see this as a very positive sign,” said Sokhi. Netflix posted nearly $8.19 billion in revenue for the quarter, compared to the $8.3 billion Wall Street had projected.

Persons: Kim Kardashian, Goldman Sachs, ”, David Solomon, Ro Sokhi, Cava, “ There’s, Skims, Andy Muir, Jens Grede, Megan Penick, Robinson, Kardashian, we’re, “, ” Adam Hodge, Volodymyr Zelensky, Russia “, Tesla, Chris Isidore, Refinitiv, Clare Duffy, Samantha Delouya Organizations: CNN Business, Bell, New York CNN, Wellington Management, Nike, US National Security Council, Russian Defense Ministry, Wednesday, Netflix Locations: New York, Cava, Skims, Russia, Ukraine, Europe, Odesa’s

☆ Goldman Sachs Profit Falls 58%
▼ + stars: | 2023-07-19 | by ( ) www.wsj.com time to read: +1 min

Goldman Sachs is the last big bank out of the gate with second-quarter earnings, and things don’t look pretty. Profit fell 58% from one year ago, to $1.22 billion. Some big news: Earnings took a big hit from Goldman’s ongoing exit from consumer lending. Also, Goldman took impairments of about $485 million related to real estate investments, much of that tied to office properties, within its asset management business. The impairments reflected properties the bank sold as well as properties the bank has marked down but not yet sold.

Persons: Goldman Sachs, FactSet, Goldman, GreenSky Organizations: Revenue, Investment

☆ Goldman Sachs profits plunge 58% as dealmaking dries up
▼ + stars: | 2023-07-19 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +2 min

New York CNN —Goldman Sachs reported a sharp drop in profit on Wednesday as dealmaking and trading, a core part of the mega bank’s business, dry up. Goldman saw its investment banking revenue decline by about 20% in the second quarter of 2023, according to its latest earnings report, released Wednesday. While Citigroup and Morgan Stanley also saw their profit decline, Goldman reported the largest drop of its peers. “We’ve been very underimpressed by management’s execution and vision in regard to the consumer side of [Goldman Sachs],” said David Wagner, portfolio manager at Aptus Capital Advisors, on Wednesday. Goldman Sachs (GS) stock was down in early trading but erased earlier losses and was trading nearly 0.9% higher following the call.

Persons: New York CNN — Goldman Sachs, Goldman, Morgan Stanley, David Solomon, ”, Solomon, “, ” Solomon, We’ve, Goldman Sachs, David Wagner Organizations: New, New York CNN, Citigroup, Aptus Capital Locations: New York

☆ Steep Profit Fall at Goldman Sachs Highlights Wall St. Giant’s Woes
▼ + stars: | 2023-07-19 | by ( Rob Copeland | More About Rob Copeland | ) www.nytimes.com time to read: +2 min

The NumbersGoldman Sachs reported a profit of $1.1 billion in the second quarter, down more than 60 percent from last year. Goldman acquired GreenSky less than two years ago, as part of an ill-fated foray into consumer lending. Goldman has gone through at least three rounds of layoffs this year, taking head count down 8 percent so far this year. Having already conceded some losses in that area, Goldman can now shift attention to other areas of the business. The bank is still unwinding the businesses, at a loss, and it may expect more ugly headlines until that is finished.

Persons: Goldman Sachs, Goldman, GreenSky, ” David Solomon, Solomon, JPMorgan Chase, Marcus Organizations: JPMorgan Locations: yore

☆ US banks gird for dose of post-stress-test trauma
▼ + stars: | 2023-06-29 | by ( John Foley | ) www.reuters.com time to read: +8 min

NEW YORK, June 29 (Reuters Breakingviews) - For the biggest U.S. banks, the nerves this year come after the exam. Fed stress tests subject banks to a theoretical market shock and incorporate elements of operational risk, and then spit out a “stress capital buffer” requirement tailored to each firm. The risk for banks is that new rules get piled on top of existing regulations in a process known as gold-plating. U.S. banks are awaiting a proposal from their regulators to revamp capital rules, expected in July. Gruenberg said regulators were considering expanding the reach of a stricter set of capital rules to include banks with over $100 billion in assets.

Persons: Goldman Sachs, Michael Barr, Jamie Dimon, Banks, Morgan Stanley, Jay Powell, PwC, watchdogs, Michelle Bowman, Martin Gruenberg, It’s, Gruenberg, Peter Thal Larsen, Streisand Neto Organizations: YORK, Reuters, Federal Reserve, JPMorgan, Citigroup, Banking Supervision, Basel III, America, State Street, Bank of New York Mellon, Big, Bank, U.S ., Reuters Graphics Reuters, Signature Bank, First, Fed, Federal Deposit Insurance, FDIC, Credit Suisse, Committee, “, “ Basel IV, Federal, Thomson Locations: U.S, Basel, Goldman, Big U.S, Swiss, “ Basel

☆ Credit-card crackdown will net limited rewards
▼ + stars: | 2023-06-22 | by ( John Foley | ) www.reuters.com time to read: +8 min

NEW YORK, June 22 (Reuters Breakingviews) - With more than two open accounts for every American, credit cards are practically part of the family. The point of credit cards is to make spending easier, yet in practice their complexity rivals the edgiest financial derivatives. At Capital One, late fees account for a little less than $2 billion of revenue, or roughly 5%, a year. If late fees have raised hackles among U.S. lenders, they’re only a taste of what could lie in store. Currently, issuers can charge $30 for a first late payment and $41 for late payments thereafter if they happen within the following six billing cycles.

Persons: Joe Biden’s, Biden, Banks, don’t, Goldman Sachs, Rohit Chopra, Michael Barr, that’s, There’s, Chase, they’re, –, Joe Biden, Jeffrey Goldfarb, Oliver Taslic Organizations: YORK, Reuters, JPMorgan, Consumer Financial, Bureau, American Bankers Association, Citigroup, Federal Reserve, Securities and Exchange Commission, Discover Financial Services, Bank of America, One, Fed, Biden, University of Michigan, Apple, Chase Sapphire, American Express, Capital, U.S, Consumer Financial Protection Bureau, New York Fed, Thomson Locations: U.S, United Kingdom

☆ Wall Street faces life in China’s second tier
▼ + stars: | 2023-06-01 | by ( Antony Currie | ) www.reuters.com time to read: +8 min

Recent earnings reports from U.S. investment banks defy the sober mood among China-focused financiers. Morgan Stanley’s (MS.N) Asia revenue in the first three months of the year was almost 40% above the final quarter of 2022. Companies going public in Hong Kong have raised $2 billion so far this year, per Dealogic. At some point Hong Kong IPOs and cross-border M&A are likely to perk up. Many of those trades flow through the Hong Kong bourse’s Stock Connect links to the Shanghai and Shenzhen exchanges.

Persons: Jamie Dimon, outlast, It’s, Morgan Stanley’s, Sharon Yeshaya, Goldman Sachs’s, that’s, Stephanie Hui, Goldman Sachs, ”, Morgan Stanley, Goldman, That’s, Breakingviews, Hong Kong, Peter Thal Larsen, Katrina Hamlin Organizations: MELBOURNE, Reuters, JPMorgan, Communist Party, Companies, HK, KKR, Reuters Graphics, Tuesday, Bank of America, Wall, China Securities, Financial Times, Apple, Hong Kong bourse’s, Goldman, JPMorgan –, Bloomberg, Thomson Locations: China, Shanghai, U.S, Asia, Hong Kong, Macau, Taiwan, Beijing, Washington, United States, People’s Republic, Germany, Hong, Shenzhen, Greater China, Pacific

☆ Goldman Sachs to Pay $215 Million to Settle Gender Bias Suit
▼ + stars: | 2023-05-09 | by ( Michael J. De La Merced | ) www.nytimes.com time to read: +1 min

Goldman Sachs said on Monday that it would pay $215 million to settle a lawsuit that accused the bank of systematically discriminating against thousands of female employees. The money will be divided among about 2,800 women, and the bank agreed to change some of its practices. The individual payout amount itself is less than it might appear: Subtracting legal fees, it comes to roughly $47,000 per plaintiff. The lawsuit accused Goldman of hindering women’s career advancement and paying them less than their male colleagues. It took particular aim at the firm’s performance review process, which they said favored men, setting them up for promotions and higher pay.

☆ Goldman Says U.S. Is Investigating Its Work for Silicon Valley Bank
▼ + stars: | 2023-05-04 | by ( Emily Flitter | ) www.nytimes.com time to read: +1 min

U.S. authorities are investigating the work Goldman Sachs did for Silicon Valley Bank in the weeks before it failed, including its advice that the smaller lender sell a large portfolio of securities at a loss, according to a regulatory filing by Goldman on Thursday. Goldman said it was “cooperating with and providing information to various governmental bodies in connection with their investigations and inquiries” into Silicon Valley Bank, which collapsed suddenly on March 10, touching off a crisis of confidence that has led to the failure of two more regional lenders, and a panic in the stock market over the fate of others. Investment bankers at Goldman advised Silicon Valley Bank’s leaders to sell a $21 billion portfolio of U.S. government debt whose value had been greatly diminished by rising interest rates. Silicon Valley Bank did so in a matter of hours, then revealed it had taken a $1.8 billion loss on the move. Goldman also tried to arrange the sale of Silicon Valley Bank’s stock.

☆ Apple’s balance sheet is golden and delicious
▼ + stars: | 2023-05-04 | by ( Robert Cyran | ) www.reuters.com time to read: +4 min

But for Apple (AAPL.O), the sharp change in monetary conditions is golden and delicious. The iPhone maker said on Thursday that it ended the first quarter with cash and saleable investments $57 billion greater than its debts. That’s nearly enough to cover its newly-raised dividend for a year, and $90 billion buyback program, without touching the balance sheet. While the first two initiatives sit on Goldman’s balance sheet, the buy-now-pay-later product sits on Apple’s. Apple had $57 billion more in cash and saleable securities on its balance sheet than its debts at the end of the quarter.

☆ Not Just a D.J., Goldman C.E.O. Also Dabbles in Luxury Real Estate
▼ + stars: | 2023-04-24 | by ( Emily Flitter | ) www.nytimes.com time to read: +1 min

On Feb. 28, top executives at Goldman Sachs staged an “investor day” to reassure shareholders that the bank would rebound after a disappointing 2022. More than a decade earlier, Mr. Solomon had purchased a multimillion-dollar beachfront home from the Discovery Land Company, which built and managed Baker’s Bay. Mr. Solomon is not just a Discovery customer. He’s also a part owner of the private company and for years has informally advised its founder — even as Goldman Sachs vied for work with Discovery. Many corporate chief executives, of course, sit on other companies’ boards of directors, but such external commitments are much less common in the heavily regulated banking industry.

☆ Goldman Sachs Sheds Consumer Loans as Losses Mount
▼ + stars: | 2023-04-18 | by ( Rob Copeland | ) www.nytimes.com time to read: +1 min

How much will it cost for Goldman Sachs to extricate itself from a mistake? Goldman said it had sold off some of those down-market loans and conceded defeat on others, to the tune of nearly $500 million in losses. In October, the firm cleaved its wobbling consumer offerings, including credit card partnerships and interest-earning accounts, into a separate division. Three months later, the bank disclosed more than $3 billion in losses tied to that business over the previous years. Even for a lender as large as Goldman, the continuous bleeding is no small matter.

☆ Goldman has its fingers in the wrong pies
▼ + stars: | 2023-04-18 | by ( John Foley | ) www.reuters.com time to read: +4 min

NEW YORK, April 18 (Reuters Breakingviews) - Rising interest rates have been a gift to big U.S. banks – except Goldman Sachs (GS.N). Boss David Solomon is reshaping the firm, but for now Goldman has to earn its money the hard way. Goldman, with interest just 15% of its revenue compared with roughly half at its banking peers, missed out. Solomon wants to remold Goldman as a bank for all seasons, but he isn’t there yet. Goldman’s fixed-income trading revenue fell 17% year-on-year, with “significantly lower” revenue in currencies and commodities.

☆ Crisis jolts Wall Street bankers already resigned to tough job market
▼ + stars: | 2023-04-05 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +5 min

NEW YORK (Reuters) - Wall Street bankers face an increasingly gloomy job market after last month’s banking crisis worsened an already bleak outlook for pay and staffing. One likely consequence of the turmoil is that banks tighten their lending standards, which could further hinder dealmaking - making the prospects for jobs and compensation on Wall Street more gloomy. Now, financial industry workers are fretting not only about pay, but job security. The Wall Street giant typically cuts about 5% of its lowest-performing staff as part of the process. While there are plenty of reasons to be glum, Wall Street workers are enjoying one silver lining after the pandemic: greater flexibility in structuring their workday.

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