Goldman Sachs Downplays Expectations Ahead of Results

The transcript discusses Goldman Sachs' recent shift in strategy regarding earnings guidance, highlighting their attempts to manage expectations amid a slowdown in investment banking and consumer banking challenges. The company has faced internal issues and scrutiny of CEO David Solomon's performance. Despite past stock performance, Goldman aims to avoid further declines by capitalizing on potential market improvements, such as cooling inflation and changes in Fed actions.

What is the traditional strategy that executives use before earnings reports?

• Avoiding any communication

• Over-promising and under-delivering

• Under-promising and over-delivering

• Providing exact guidance

Why has Goldman Sachs been more open about its earnings this time?

• To follow a new company policy

• To compete with Morgan Stanley

• To attract new investors

• Due to a slowdown in investment banking

What internal issues is Goldman Sachs currently facing?

• High employee turnover

• Internal bickering and scrutiny of leadership

• Excessive regulatory fines

• Lack of innovation

How has Goldman Sachs' stock performed compared to its peers in recent years?

• Worse than Jeffreys

• On par with all major banks

• Better than most peers but behind Morgan Stanley

• Better than Morgan Stanley

What factors could help improve Goldman Sachs' future performance?

• Increased regulatory actions

• A rise in inflation

• Higher interest rates

• Reopening of capital markets and economic stability