Goldman’s Juggernaut Rolls On

The outperformance at 85 Broad is nothing short of spectacular, and leaving people grasping at straws.

Dick Bove, the over- exposed brokerage analyst at Punk Ziegal, has not been buying the party line from Blankfein et al, and it must pain him greatly to raise his price target today from $178 to $224. Although he grudgingly admits that they should pick up share as rivals retrench, his lack of enthusiasm on this stock has been well off the mark.

The Post is taking their best shot today, implying that the SEC is investigating the firm for being positioned correctly heading into the subprime swoon:

One person who discussed the matter with the SEC says the investigator seemed curious as to whether the investment banking side of Goldman's business could have tipped off the trading side of that brokerage firm to the extent of the problems that would soon be encountered by Bear and others.

And there also seemed to be a philosophical discussion as to whether that would constitute insider trading even if there was such a leak. The SEC doesn't comment on any investigation it might be undertaking. My sense is that the SEC's interest is preliminary.

If someone had known the scope of the subprime mortgage mess ahead of time he could have profited handsomely. New York Post

Conspiracy theories are unlikely to take down Goldman, and it should not be a crime to be plugged in. Somehow we bet they will be on the winning side of today’s trade when the dust settles, and with the bonus pool intact the firm might sport Wall Street’s happiest campers.

No surprise there.

SEC EYES GOLDMAN SACH’S GOOD FORTUNE
New York Post

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