Goldman Sachs Group Inc. (GS) Financial News - U.S. Banks Are Spared Stresses of 2008 Amid Equity-Market Rout
Goldman Sachs Group Inc. (GS)
U.S. Banks Are Spared Stresses of 2008 Amid Equity-Market Rout
2011-08-11 04:32:50Quote: A lot of the markets are fine, the repo markets, the mortgage markets, some of the credit markets are still open.â€ BofA, Citigroup CharlotteNorth CarolinaGoldman Sachs Group Inc. (GS) each fell more than 9 percent. â€œPeople are responding to a huge amount of uncertainty around the economic outlook,â€ said Richard Staite, an analyst at Atlantic Equities LP. â€œIt is expected that investors would look to sell the banks as being one of the most impacted sectors from that.â€ Wells Fargo & Co. (WFC) increased 2.7 basis points to 117, the data show. Contracts on New York-based banks Goldman Sachs and Citigroup climbed to 195 basis points and 194 basis points, respectively. Bank Capital Richard Ramsden said in a report this week. Liquid assets make up 35 percent of holdings at Bank of America, JPMorgan and Citigroup, compared with 27 percent in 2007, according to the report. â€œThe teams that are managing liquidity at these firms have seen the abyss and have peered down into it recently,â€ said David Knutson, a credit analyst at Legal & General Investment Management. â€œThose memories are fresh in these management teamsâ€™ minds and I think thatâ€™s why the risk is low.â€ Concerns about banksâ€™ capital and liquidity are less pronounced than in 2008, Charles Peabody, an analyst at Portales Partners LLC, said in a Bloomberg Radio interview. Revenue Recovery â€œThe problem is, when are we going to see any kind of revenue improvement?â€ Peabody said. â€œGiven the flatness of the yield curve, margin assumptions are going to be cut again, and given the uncertainties in the economy, loan demand assumptions and the capital markets assumptions are going to be pared back. So, youâ€™ve pushed out any kind of revenue recovery until the first quarter of next year.â€ Morgan Stanley (MS)Federal Reserve in September 2008 after hedge-fund clients pulled funds from the firmâ€™s pr...
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