The recession in the economy has thrown up barriers for most of the country ‘s largest banks. Not so for Goldman Sachs Group Inc.
The price of the Wall Street giant’s share closed at a record for the first time in nearly three years, a sign of how much the bank has benefited from last year’s financial turmoil. Its stock has risen about 19% over the past month, far more than any of its five major bank counterparts.
Goldman shares had been stagnant for years, a perpetual concern for CEO David Solomon and a man who forced the skin to recapture some of the bank’s famous secrets a year ago. At the time, his trading industry was lamenting amid efforts to build a consumer bank and grow its wealth management business.
The pandemic has crushed many of these challenges. He gave impetus to roller-coaster markets that built his traditional sales and trading business. Then, as markets bounced back, their banks made money helping corporate clients sell debt and equity.
The investment banking industry appears to have remained strong in the last three months of the year. Jefferies Financial Group Inc. said. late Monday saw their earnings from investment banking hit a record in the fourth quarter, which analysts see as a favorable signal for larger competitors such as Goldman.