Goldman Sachs (GS), arguably the most successful firm on Wall Street, may emerge completely unaffected by the new financial reform law, the Los Angeles Times’s Nathaniel Popper reports.
Last week, CNBC broke the news that Goldman was weighing the possibility of spinning off all or some of its proprietary-trading operations in the face of new regulations. But despite the spin-off rumors and the idea of Wall Street operating under an environment of increased regulatory scrutiny, top Goldman executives have, according to Popper’s report, “privately advised analysts that the bank did not expect the new legislation to cost it any revenue.”
LA Times: “The statement was perhaps surprising in its level of conviction,” Bank of America Merrill Lynch (BAC) analyst Guy Moszkowski wrote in a note to clients, “but we’ve learned to take such judgments from GS very seriously.”
Dick Bove, a bank analyst at Rochdale Securities, told Popper he’s very optimistic on Goldman’s prospects and had changed his view of the new ‘sweeping’ finance reform law effect on the bank.
“I thought this company was going to be really harmed by this bill; now I’ve figured out that it’s not going to happen,” [Bove] said. “They should win big here.”
So much for Wall Street’s giants expected to suffer most under new regulatory restrictions.