Goldman Sachs Group Inc (GS) Financial News - Bank of America Leads Jump in Default Swaps on U.S. Lenders
Goldman Sachs Group Inc (GS)
Bank of America Leads Jump in Default Swaps on U.S. Lenders
2011-08-08 11:01:25
Quote: A Goldman Sachs Group Inc. research team led by economist
Jan Hatzius said in a note to investorsthat “S&P has
indicated that it would not immediately downgrade any banks or
broker dealers in relation to a sovereign downgrade†although
“Moody’s has indicated that it might in the event that it
downgraded its U.S. Sovereign rating.â€
Swaps Prices
Contracts on Charlotte, North Carolina-based Bank of
America, which rise as investor confidence deteriorates, gained
24 basis points to 232 basis points as of 8:35 a.m. in New York,
according to broker Phoenix Partners Group. Swaps on New York-
based Morgan Stanley jumped 22.9 to a mid-price of 221.6, the
highest since July 2010, prices from data provider CMA show.
Goldman Sachs Group Inc. (GS)JPMorgan Chase & Co. (JPM)Wells Fargo & Co. (WFC) rose 10 to 120, according to
Phoenix. Contracts on Citigroup added 17.3 to a mid-price of
179.8, CMA prices show.
The contracts pay the buyer face value if a borrower fails
to meet its obligations, less the value of the defaulted debt. A
basis point equals $1,000 annually on a contract protecting $10
million of debt.
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Goldman Sachs Group Inc Stock Summary
The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as a range of financial services to corporations, financial institutions, governments and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory services, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, and restructurings and spin-offs; and underwriting activities comprising public offerings and private placements of a range of securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution services, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and futures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations; and offers prime brokerage services. Its Investing and Lending segment originates longer-term loans; and invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. The company?s Investment Management segment provides investment products and services to institutional and individual clients, as well as offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. The Goldman Sachs Group, Inc. was founded in 1869 and is headquartered in New York, New York.
