Goldman Sachs to Wall St.: Mind your own business!
Rumors that Goldman Sachs (NYSE: GS, Stock Forum) will have to raise more money have helped push its stock from $123 less than a month ago to $71 yesterday.
Wall St. wants to believe that the money which the venerable trading house got from Warren "Warrant" Buffett and the U.S. Treasury was not enough. Goldman is in trouble, they say, like Morgan Stanley (MS) and Merrill Lynch (MER) before it.
The head of Goldman says that is hogwash. CEO Lloyd Blankfein said the firm does not need a deal or more capital to stay afloat. Clearly in a defiant mood he told a conference, "We're going to consider everything," but won't be provoked into "doing something rash" that the company will spend years reversing, according to The Wall Street Journal.
Like other Wall St. CEOs, Blankfein may be seeing a bottom to the credit markets. There is some modest sense in that.
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Copyright 2008 Stockhouse
