Goldman Sachs Ups to Record Price Record

The epidemic recession has created barriers for most of the country’s major banks. not like that

Goldman Sachs Group a company

P 5.40%

The Wall Street giant’s stock price closed at a record high for the first time in nearly three years, an indication of how much the bank has earned from the financial mess last year. Its stock has risen nearly 19 per cent over the past month, far more than any of its five comparable banks.

Goldman’s shares have held steady for years, which is and led to CEO David Solomon a constant concern Remove some of the famous bank secrecy a year ago. At the time, its businesses were weakening amid the efforts made Building a consumer bank And the wealth management business is growing.

The pandemic has pushed aside many of these challenges. This stimulated the roller coaster markets It raised its traditional business in sales and trade. Then, as the markets recovered, the bankers made money Helping corporate clients sell debt and equity.

Investment banking may have remained strong in the last three months of the year.

Jefferies Financial Group a company

It said late Monday that its investment banking revenue hit a record high in the fourth quarter, which analysts see as a favorable sign for larger competitors like Goldman.

Shares in the bank, which is posting dividends later in the month, rose 5.4%, or $ 14.62, on Wednesday, beating their 2018 highs. High interest rates After the run-off elections in Georgia’s Senate, bank shares were broadly pushed up.

American Bank Corp.

It jumped 6.3% and

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Wells Fargo

And Co. 7.1%.

Morgan Stanley

He added 6% and

C. B. Morgan Chase

And Co. 4.7%.

Unlike JPMorgan and Bank of America, Goldman does not have a large consumer bank. This sent its share price down during a rally in bank stocks in 2019, when it helped healthy consumers in the United States Drive huge banks to big profits.

But the coronavirus recession has made high consumer exposure a liability, forcing banks to set aside tens of billions of dollars Prepare for potential loan losses. GB Morgan, the largest bank in the US by assets, was about 6.8% below its level at the market close on Tuesday. Meanwhile, Goldman’s shares outperformed most of their peers in 2020 through 2021.

Other factors also boosted Goldman Sachs’ stock price: the bank It entered into a multi-billion dollar settlement With the Ministry of Justice in October, he closed the door to a long-running investigation into his work on behalf of a corrupt Malaysian government fund known as 1MDB.

The billions of dollars lost from the Malaysian 1MDB fund became one of the biggest financial scandals ever, with Goldman Sachs agreeing to pay the US government more for its participation than it did after the 2008 crisis. Here’s how the alleged fraud happened and then collapsed. Composite Image: Adam Falk (Originally posted on October 20, 2020)

In December, the Federal Reserve It eased its epidemic restrictions on share buybacks. Buybacks can raise a company’s share price by withdrawing shares from the market and making profits appear stronger on a stock basis.

Banks will be able to return the capital in the first quarter, but their average quarterly profit cannot exceed last year. This could benefit Goldman Sachs, in particular, due to its strong profitability.

Write to Ben Esen at [email protected]

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