The New York Times reports that now the company is facing questions about whether it will be able to maintain its place atop the financial industry in a new era of regulations that hit hardest the very businesses in which Goldman makes the most money.
Among Wall Street analysts, the company has been losing its favored position. Only a quarter of the analysts that follow the company have a buy recommendation on the shares of Goldman Sachs — the lowest proportion in years — while roughly half are still positive on its fiercest rival, Morgan Stanley, and even more recommend buying JPMorgan Chase stock.
Further signs will come next week, when Goldman and the other big banks report third-quarter results. Goldman is expected to report higher profit than it did a year ago, but much of the bank’s recent success has come from divisions that are expected to shrink as new regulations are phased in.
Hit the link below to access the complete New York Times article: