Goldman Sachs: Bank Holding Status Won't Change Strategy
Goldman Sachs and rival Morgan Stanley (MS) both applied for and received bank holding status earlier this year as investors worried about the business models and financing of investment banks. One benefit of bank holding status is that bank deposits could lower the cost of funding, according to the slide presentation.
In the company's third quarter, leveraged loans, and commercial and residential real estate loans have been reduced to 82% of the company's tangible common equity.
Goldman Sachs also asserted that leverage hasn't been a driver of the firm's return on equity. In the current financial crisis, Goldman and other financial firms have been reducing their leverage, which can boost profits but also elevates losses.
The investor conference is sponsored by Merrill Lynch & Co. (MER)
-By Jessica Papini, Dow Jones Newswires; 201-938-2437; jessica.papini@dowjones.com
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(END) Dow Jones Newswires
November 11, 2008 16:54 ET (21:54 GMT)
Publié le 11 novembre 2008 Copyright © 2008 Dowjones
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