Goldman Sachs has amassed a war chest of $164bn in cash and liquid assets that could be used to buy distressed securities and loans, Goldmanâs chief financial officer said on Tuesday. David Viniar spoke as the bank sold $5bn in common stock â at $123 per share â which it will use to repay some $10bn from the US TARP scheme. Goldman on Monday reported $1.81bn in Q1 earnings, helped by a record $6.5bn in revenues in fixed income, commodities and currencies activities. http://ftalphaville.ft.com/blog/2009/04/14/54656/goldmans-blow-out-q1-figures/ Why not cleaning up their own level 3 assets ? Anybody recognized that in all that "earnings hype" not any single media commentator mentioned level 3 assets ???
valuations of L3 assets are typically based on management assumptions or expectations. They are assuming there are no problem with their commercial/residential mortgage, long date complex derivatives and private equity investment portfolios. The media is only "allowed" to focus in what the PR wants them to focus (at least the mainstream media). obviously, the present rally has been fabricated and carefully planned to prop up the stock market and help these companies raising capital in a more friendly environment. let us not forget that the master minds behind this plan are the same that brought us here in the first place so the tactics are pretty much in sync.
"$164bn in cash and liquid assets" and they have to come back to shareholders and raise another $5bln?
They claim to be conservative in their marks and yet those writedowns keep coming every quarter without fail
Goldman Sachs cut at J.P. Morgan on valuation J.P. Morgan cut its rating on Goldman Sachs to neutral from overweight and left its price target unchanged at $120, saying the stock is now fully valued. The broker said that while the investment bank has the stronger and cleanest capital position in its peer group and a management with a proven track record of quickly reallocating resources to account for changes in the market and products, its sum-of-the-parts valuation offers upside of only 2% when compared with Credit Suisse at 10% and UBS at 21%. In addition the broker said it believes that the first quarter is a not a sustainable fixed income currency and commodities environment.