Goldman Sachs Group Inc. , the fifth-biggest U.S. bank by assets, will continue making principal investments with the firm’s own money because executives don’t think the so-called Volcker rule prevents the practice, a Bank of America Corp. analyst said.
Goldman Sachs Group Inc., Citigroup Inc. and Morgan Stanley were among Wall Street banks whose second-quarter profit estimates were cut by analysts, who said the companies’ trading revenue was likely to tumble.
On Jan. 2, Jim Clark , a founder of such technology icons as Netscape Communications Corp. and Silicon Graphics Inc. , was at home in Palm Beach, Florida, when he got an e-mail from an executive at Goldman Sachs Group Inc. ’s private wealth management division. Goldman was offering Clark a chance to invest in the closely held social-networking company Facebook Inc. The deal -- through a fund overseen by Goldman Sachs Asset Management -- was being offered to other Goldman investors at the same time, Bloomberg Markets magazine reports in its March issue.
The biggest U.S. banks captured the highest share of global trading revenue in at least two years as their counterparts across the Atlantic reduced risk in the fourth quarter amid a worsening sovereign-debt crisis.
Goldman Sachs Group Inc. fell in New York trading after reports that federal prosecutors are weighing criminal fraud charges against Wall Street’s most profitable firm and the stock was downgraded to “neutral” from “buy” at Bank of America Corp.