Goldman Sachs (NYSE: GS) will take a $3 billion write-down when its announces its quarterly results, according to the Telegraph. That will cut the firm’s first quarter earnings by 50%.
"Goldman will also take a hit of about $1.6bn in its leveraged loans business, which has seen a marked decline in recent months amid a dearth in demand for trading bank debt. A further $1.1bn will be written down in connection with assets owned by Goldman’s principal investment area, the bank’s private equity arm."
If the numbers are that bad, brokerage and bank stocks are in for another substantial correction this week.
Douglas A. McIntyre