Rating Agency Egan-Jones Downgrades Goldman Sachs

[Donnachaidh]

http://dailybail.com/home/rating-agency-egan-jones-downgrades-goldman-sachs.html

Goldman Sachs Downgraded from AA to AA-

Synopsis: GS recorded $2.96B in investing and lending losses and a $378M decline in IB revenues, totaling a $3.34B decline. Hence, the total loss of merely $393M is respectable. Furthermore, given the political pressure, now is not the time to show robust results. The major issues facing GS is the cost of complying with the Volker rule (look for some changes or exemptions from the proposed rule), changes in senior management (to appease Sen. Levin) and a still weak IB and trading environment. However, with the demise of most of its major competitors, GS benefits from the lack of competition, attractive LT trading opportunities, and various forms of federal government support.

Other raters might take negative actions.

This morning Goldman reported their 2nd quarterly loss as a public company. While Bank of America reported quarterly profits of $6.2 billion.

[Tierra_y_Libertad]

1. Very sad. Tsk, tsk. Tragic. Think of the bankers children. Heartrending. Bail them out.

[aquart]

2. Why does this make me smile so widely?

Rhetorical. I know why.

[elleng]

3. Ditto,

but pissed BoA + Citi reported large UPs yesterday.