Bloomberg Businessweek

Goldman Profit Tumbles on Real Estate Hits, Deals Slump

Jul 19, 2023
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INSIGHT

Goldman's Weak Quarter

  • Goldman Sachs experienced one of its weakest quarters under CEO David Solomon, with earnings down 58%.
  • This was due to a slump in investment banking, real estate markdowns, and a consumer business writedown.
INSIGHT

Goldman Sachs Valuation

  • Mike Mayo observes Goldman Sachs' valuations are at their lowest in 30 years, excluding major crises.
  • He remains optimistic, suggesting a potential bottoming out, echoed by bank CEOs.
INSIGHT

Goldman's Unique Challenges

  • Goldman Sachs faces unique challenges compared to other banks due to its lack of Main Street presence.
  • Its attempt to establish a Main Street presence is fading, and it holds a large portfolio of balance sheet investments.
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