Goldman Sachs By: Amandeep Gill Geoff Thomasson

Transcript:Goldman Sachs By: Amandeep Gill Geoff Thomasson:
Goldman Sachs By: Amandeep Gill Geoff Thomasson Katherine Lypkie Tej Sandhu Agenda Goldman Overview Risk Management Environment Market Risk Credit Risk Liquidity Risk Operational Risk Regulatory Risk Recommendations Hello  GS - Overview Overview History Founded in 1869 by Marcus Goldman in New York Son in law, Samuel Sachs, joined in 1882 and adopted their current name in 1885 Early 20th century mainly IPO’s December 1928 launched Goldman Sachs Trading Corporation, which failed during the 1929 stock market crash 1930’s focus shifted towards investment banking First international office in London 1970 Overview History Major events – Sears IPO – 1906 Stock Market Crash 1929 – moved out of trading to more investment banking Ford IPO – 1956 Penn Central Transportation Company bankruptcy left GS with 80million in cp, this lead to credit ratings for cp issuers – 1970 Microsoft IPO – 1986 1990 introduced paperless trading to NYSE IPO in 1999 only 12% held by public→ As of 2009, 67% of GS owned by shareholders Overview History- Subprime Crisis Made $4 billion in profit due to shorting the subprime mortgage backed securities September 21, 2008 following the collapse of Lehman Brothers, Goldman along with Morgan Stanley became a bank holding company Now under the supervision of bank regulators Easier access to capital Overview Current Situation Offices in over 30 countries with 35,700 staff members 44% of revenue generated outside of the Americas CEO Lloyd Blankfein Former trader at Goldman BA JD from Harvard 2010 revenues of 39.2 billion with net earnings of $8.4 billion Total Assets of 910B as of 3Q Market Cap of 84.3B Overview Current Situation Global investment banking and securities firm operating in three main financial services areas: Investment Banking Trading and Principle Investments Asset Management and Securities Services …mainly for institutional clients; however, some PCS. Overview Financial Highlights Overview Financial Highlights Overview Firm – Goals & Strategy “In many respects, our job is to match the capital of our investing clients — who aim to grow the savings of millions of people — with the needs of our corporate and government clients — who rely on financing to generate growth, create jobs and deliver products and services.” Goals – industry leading returns while continuing to grow book value and earnings per share Overview Firm – Business Principles 1. Our Clients’ interests always come first 2. Our Assets are our people, capital and reputation 3. Our goal