i just saw that gs and ms will morph into banks! should this cause a revaluation
of their share price? if so what would it be? don't they still carry their
losses on mark downs?
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GS does not have bad paper. But short was still piling on due to its high
leverage. If GS is allowed to raised cheap capital ( deposit) and certainly know
how to use it, they can maintain a solid balance sheet.
My concern is about their under-writing, trading and hedging. All these have
always
been leveraged (LBO, exotic derivatives, Leveraged loan, etc). We need to
observe how these smart people innovate commercial banking.
He's asking what you think the stock will do. I'd like a prediction myself.
Normally futures are posting by 5 am eastern time and here it is 5:34 and I see
nothing on them or the DOW.
you need the deposit base since the govt is going to take away the bad paper.
otherwise they would have to liquidate more of other assets.
so pick a proven better bank...stock!
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