Goldman Sachs earnings have attained post-financial crisis peaks with a 12-quarter high for earnings per share ($5.60) and an 11-quarter high for net income ($2.89 billion). The World’s Most Hated Banksters, led by CEO Lloyd Blankfein, have achieved redemption from shareholders, at least for now.
Financial position has been stable, but capital continues marginal. Risk management appears to be attempting to evade prosecution for criminal activities, settling without admitting guilt, and bribing Congress to keep the financial regulators away. Negative karma continues at epic levels but give the Devil his due for this quarter.
At QE 12-31-12, I have tentatively rated Goldman Sachs a “D” on a scale of A+ to G-. This is an upgrade from “F-” at the prior QE 9-30-12. The median rating is “D” and the average rating at QE 9-30-12 was “C”. Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.
“While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “The firm’s strategic position provides a solid basis on which to grow and generate superior returns.”