Minyanville's Sean Udall dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit www.minyanville.com.Earlier in the week, I noted that Goldman Sachs (NYSE: GS) was well positioned to capitalize on what's happening in the financial services space. And nowhere is that becoming more clear than in the advice it's offering and capital raises it's conducting for troubled institutions like Fifth Third Bankcorp (NASDAQ: FITB), Wachovia (NYSE: WB) and Washington Mutual (NYSE: WM).
Like looking to IBM (NYSE: IBM) for your office computer needs in the old days, Goldman is now the obvious choice if you're a bank CEO under siege.
But this may be a short-term benefit for Goldman, as the excessive concentration of business in one firm ultimately puts that firm's whole franchise at risk. If the Goldman brand is to maintain value with investors, it must become increasingly selective as to who it sponsors. But being choosy puts clients at risk.
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Reader Comments (Page 1 of 1)
6-19-2008 @ 8:00PM
james said...
Todd, I like you. However I think GS is WAY overrated and they are next. Here's why......look at Volker and Rubin.......they were there.......now look at where they are or were just recently. C or Fed......when folks realize those characters sold their share tax free.......because they sacrificed for this socialist government....and walk off with millions........tax free............and Volker said,'' Americans have to lower their living standards''.........they don't.........we do......and people find out about the CFR and trilateral connections as well as the ''skipping out of Citi''......Ruben did.........says to me.........GS is hiding something........no one is that perceptive of the future........accept prophets of Christ.........GS is NO prophet.... Good day.