Chillin' out till it needs to be funded
On the Goldman Sachs saga, european banks analysts broke the situation down to one where GS top brass be changed. This negative string of abuisive analysis is now a ‘legacy’ to Europe’s cuastic accumulation of grunge in the Capital Markets since September last, when the crisis found a new home in Europe without anything to divert the markets’ attention. It is to be seen if investors will back his unguarded rebuttal mode of European analyst teams from Credit Suisse, UBS and others…
Rochdale Securities, an American firm, ‘s analyst Rowe writes:
“Will Lloyd Blankfein, CEO, and David Viniar, CFO, maintain their positions in the company? I do not think so,” Bove wrote in a note to clients today. “Someone must ‘fall on their swords’ for the devastating decline in this company’s persona and they may be forced to do so for public relations reasons.”
Goldman Sachs, the most profitable securities firm in Wall Street history, was sued by the Securities and Exchange Commission today for fraud tied to collateralized debt obligations. The shares tumbled as much as 16 percent, marking the biggest one-day decline since Jan. 20, 2009.
The firm’s “deep bench” makes the executives replaceable, and Viniar would likely have to be succeeded by someone from outside the company, Bove wrote. Goldman Sachs remains a “buy,” according to Bove.
“I do not believe institutions will stop trading with Goldman Sachs over this issue,” Bove wrote. “The company’s presence, systems, capital, and expertise in trading markets make it number one in the world in this activity.”
This is excerpted from the Bloomberg break on the story over the weekend, hat tip to New York Times