Morningstar Rating

Stock Research and Analysis

by Michael Wong, CFA, CPA

Bulls Say

Even if its structure has changed, Goldman still has the same capable management and employees that enabled it to outperform in recent years.
The company has a record of success with higher-volume lower-margin businesses, and this capability could prove useful in adapting to OTC derivatives reform and changes in the fixed-income trading landscape.
Several of the company's primary U.S. and European competitors have been forced to restructure, and this could give Goldman an opportunity to gain market share. Read more 

Bears Say

All else equal, reduced leverage reduces returns to shareholders.
A severe financial shock could still turn market sentiment against the company.
Goldman remains highly leveraged, and the markdown of its securities inventory always has the possibility of taking a large bite out of the company's capital position. Read more 

Management

Lloyd Blankfein has been chairman and CEO since Henry Paulson left to become U.S. Treasury secretary in 2006. Blankfein has held various positions at the firm for more than a decade, from co-head of the currency and commodities division in 1994 to president   Read more 

Profile

Goldman Sachs is a global investment banking firm whose activities are organized into investment banking, institutional client services, investing and lending, and investment   Read more 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

The Friday Five 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.