Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Goldman Sits High and Dry in Credit Crunch

Wall Street envies lone investment firm that got it right

By Kevin Spak,  Newser Staff

Posted Nov 19, 2007 4:48 PM CST
Email

(Newser) – When Goldman Sachs reported $2.85 billion in third-quarter profits, it sounded like an “I told you so.” As most financials reported credit-crunch pratfalls, Goldman alone had read the signs and gone the right way on mortgages. “You’d have to give them an A-plus,” said one Merril Lynch analyst. Many wish they didn’t have to, the New York Times says.

Goldman is the Street’s most powerful firm, with an enviable global reach. Alumni pepper corporate and political power positions, fueling conspiracy theorists. Most galling: Goldman’s investment business often competes with the clients they’re advising. “They’ve managed to get their clients to live with it,” grumbled one client.

The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs, is shown in this June 12, 2007 file photo. Goldman Sachs Group Inc. on Thursday, Sept. 20, 2007 reported third-quarter results well ahead of Wall Street projections. (AP Photo/Richard Drew, file)
The building on Broad Street in New York's Financial District that houses brokerage firm Goldman Sachs, is shown in this June 12, 2007 file photo. Goldman Sachs Group Inc. on Thursday, Sept. 20, 2007...   (Associated Press)
This undated handout file photograph of Goldman Sachs president and chief operating officer Lloyd Blankfein was released by the Wall Street investment bank, Friday, June 2, 2006. Associated Press reporters and editors have surveyed proxy statements for most of the S&P 500 companies to provide a full picture of executives'...
This undated handout file photograph of Goldman Sachs president and chief operating officer Lloyd Blankfein was released by the Wall Street investment bank, Friday, June 2, 2006. Associated Press reporters...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Goldman forsees trillion-dollar hit for lending industry
Money Morning

Goldman will inherit the earth
TheStreet

Goldman still raising money for new hedge funds
Seeking Alpha

 
Goldman Sachs • subprime mortgages • credit market • investment banks

More Newser Stories

Goldman Earnings Hit Record

Swiss Bank Giant Posts Huge Losses Amid Credit Crisis

Mortgage Trouble Rattles Wall Street

Goldman Posts $428M Loss

Feds Sue Big Banks Over Mortgages
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne