Is there a bank out there now who has not hired Goldman Sachs (GS) as an adviser?
Wachovia(WB) recently disclosed that it hired Goldman as an adviser to help is get out from it’s huge portfolio of troubled loans. They join Royal Bank of Scotland(RBS) Washington Mutual (WM), National City (NCC) and State Street(STT) who turned to Goldman for advice and to raise money as conditions and loans portfolios have deteriorated.
Now news is out that Lehman (LEH) may be looking for a partner. anyone want to bet Goldman is involved somehow Will Fannie (FNM) and Freddie (FRE) turn to Goldman as their fortunes continue to sour? Goldman helped Freddie Mac raise $6 billion in preferred capital last year.
It is getting to the point where you have Goldman, JP Morgan (JPM) and Wells Fargo (WFC) as the cream of the crop in financials since they seem to be involved in everything when it comes to bailing or helping people out or in the case of Wells Fargo, not in the news at all and the rest of the financials mulling around looking for a handle to grab.
Goldman’s earnings call at the end of the month ought to be an interesting one. If anyone knows what is sitting out there on banks books, it will be them. What they say will bear listening to.
Disclosure (“none” means no position):Long GS,WB,WFC, None
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