Can this be right? A Goldman executive who’s not bullish?
According to Reuters it is.
TEL AVIV, June 10 (Reuters) – Goldman Sachs CEO Lloyd Blankfein said on Wednesday he believed a current upturn in world markets was probably not a full recovery from crisis and said he expected a further long recession.
“I think it’s going to be a long proctracted recession,” he told an international regulators conference in Tel Aviv.
Addressing a current upturn in markets, he said: “There is no reason to think this is it … So many things have to be sorted out. Why would this be the recovery?
“The chances are it’s not.
Wow!
Of course, that doesn’t mean Goldman won’t do well, as investment banking analysts at JPMorgan noted on Wednesday.
We expect Investment & Wholesale Banks to post record revenues in Fixed Income, supported by very favorable market conditions (high volatility, wider margins and strong issuance volumes) and a fundamental change in the competitive landscape. We estimate Fixed Income will be the main earnings driver in 2009E, accounting for 14% to 61% of group revenues in 2009E, and more than offsetting the increase in loan loss provisions.
And who has the biggest FI division of all the IB’s? Goldman obviously.
Related link:
Ten US banks to repay Tarp funds – FT Alphaville