Even though Merrill Lynch & Co. (NYSE: MER), Citigroup Inc. (NYSE: C) and Bank of America Corp. (NYSE: BAC) have taken multi-billion dollar write downs because of the collapse of the subprime mortgage market, Goldman Sachs Group Inc. (NYSE: GS) appears to be weathering the meltdown just fine.
Speaking at a Merrill Lynch conference, Chief Executive Lloyd Blankfein said the investment bank doesn't expect to take any significant write downs and has a "pretty good grip" on asset valuations, according to Reuters. Moreover, the company has a short position in subprime mortgages. Shares of Goldman Sachs, which haven't done squat for the past six months, are up 5.5% in mid-morning trading to $226.56.
Whomever decided to go short in subprime mortgages, will no doubt be getting a fat bonus. Investors shouldn't pop the champagne corks quite yet. The extent of the subprime meltdown is still being determined because the housing market won't rebound for quite some time.
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Reader Comments (Page 1 of 1)
11-13-2007 @ 1:46PM
mg said...
this article would have more credibility if you could spell 'champagne'