Ward: Goldman Sachs Valuation Can Be a Money Maker

The transcript discusses Goldman Sachs' transition into a traditional bank, highlighting its online banking and lending initiatives. It explores the pressures Goldman faces to outperform competitors like JP Morgan and Citigroup, especially in fixed income trading. The discussion compares investment opportunities in Goldman Sachs and JP Morgan, noting differences in risk and valuation. Market expectations for Goldman are high, driven by cost cuts and strong fixed income results. The transcript also touches on leadership succession at Goldman Sachs, with questions about future directions under new leadership.

What recent steps has Goldman Sachs taken to become more like a traditional bank?

• Merged with another major bank

• Stopped taking deposits

• Launched online banking and lending products

• Opened physical branches across the country

Which bank is considered a less risky investment with a stable dividend yield?

• Goldman Sachs

• Citigroup

• JP Morgan

• Bank of America

What is a key reason for the historical discount in Goldman Sachs' stock price?

• High volatility

• Low dividend yield

• Limited online presence

• Lack of international operations

What is a potential risk mentioned regarding Goldman Sachs' future earnings?

• Decline in online banking users

• Over-reliance on physical branches

• Increased competition from small banks

• Volatility and execution risk

What recent change in leadership is noted at Goldman Sachs?

• Appointment of a new CEO

• Retirement of Mr. Schwartz in Asia

• Merger with another bank

• Expansion of the board of directors