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, which could give Goldman an opportunity to gain market share. Read more
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
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
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