Sunday, July 12, 2009

NYT: "Blowout Profits" for Goldman Sachs

Imagine my surprise.

NYT writes:

Most of Wall Street, and America, is still waiting for an economic recovery. Then there is Goldman Sachs.

Up and down Wall Street, analysts and traders are buzzing that Goldman, which only recently paid back its government bailout money, will report blowout profits from trading on Tuesday.

Analysts predict the bank earned more than $2 billion in the March-June period, thanks to its trading prowess across world markets. If they are right, the bank’s rivals will once again be left to wonder exactly how Goldman, long the envy of Wall Street, could have rebounded so dramatically only months after the nation’s financial industry was shaken to its foundations.

The obsessive speculation has already begun, along with banter about how Goldman’s rapid return to minting money will be perceived by lawmakers and taxpayers who aided Goldman with a multibillion-dollar cushion last fall.

“They exist, and others don’t, and taxpayers made it possible,” said one industry consultant, who, like many people interviewed for this article, declined to be named for fear of jeopardizing business relationships.

NYT reports that there is one other financial firm doing well, none other than Jamie Dimon's firm, which like Goldman appears to get special treatment. NYT again:
Goldman is not the only bank that appears to be returning to health. JPMorgan Chase is also emerging as one of the strongest players in this new era of American finance.

1 comment:

  1. Hey Robert -

    Here is a good chronology of news reports on Goldman since the collapse started last fall:

    Hey, did you catch your buddy "Romu" taking on Michael Shedlock?

    Where do you stand on the 'flation argument?