Its earnings season again, and Goldman Sachs Group Inc. (NYSE:GS) is kicking off the festivities with its second-quarter earnings announcement Tuesday.
Analysts expect the New York bank to report earnings of $3.54 a share,
according to Thomson Reuters, down from the year-ago $4.58, but still well above what was considered a very strong $3.39 per
share in the first quarter. Goldman posted a profit of $1.8 billion in the first quarter.
Adding to Goldman's cache is Meredith Whitney, who gave a buy rating for the bank. Commenting on CNBC Monday morning, she said that "Goldman has all the benefits of the capital markets in general without the 'junk in the trunk' as I like to call it."
But stellar numbers are not quite what they used to be in light of the
government's $800 billion bailout package and the Federal Reserve's
unprecedented amount of intervention in debt. As a recipient of $10
billion in TARP money, Goldman and other banks may be looking at a
new round of backlash against them should their earnings look too rosy
so soon after paying back TARP money.
Not only could Goldman suffer anger from taxpayers, but it may also be fielding calls from regulators or Congress if it appears the bank is ratcheting up its leverage ratios again. According to Bloomberg, a return to pre-Lehman Brothers Holdings Inc. collapse risk-levels has resulted in predictions that "Goldman's trading revenue in 2009 will top its 2007 record as the firm profits from reduced competition after the collapse of rivals, including Lehman Brothers and Bear Stearns Cos., according to Bank of America analyst Guy Moszkowski in New York."
Business is apparently so booming that earlier this year it was reported that Goldman was telling employees in its London office to expect record bonuses if things continued as they were. Goldman has since denied that.
Such unwelcome attention would be the latest headache for Goldman, which has had its share of hassles in recent weeks due to trading codes being stolen and accusations of secretly running/ruining the world. However, Goldman's been plenty busy at trading and in its investment banking businesses, so it appears that Tuesday it will have its day in the sun. - George White
Its earnings season again, and Goldman Sachs Group Inc. (NYSE:GS) is kicking off the festivities with its second-quarter earnings announcement Tuesday.
GOLDMAN SACHS Writes To The President.... A LETTER of THANKS.
http://pacificgatepost.blogspot.com/2009/07/goldman-sachs-thank-you-mr-president.html
……. And the circus continues, with Taxpayer singing the tune.