By
Mike Kasprzyk
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More Articles
September 25, 2007
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Goldman Sachs (NYSE: GS ) is on top of the world right now. After posting a quarterly earnings increase of 88% last Thursday, the highly revered investment bank is back in the news. This time, though, the firm has been sought out for consulting.
Apparently, London-based mortgage lender Northern Rock has written a check it can't cash. Last week, the company's alarming lack of liquidity inspired London's Treasury to guarantee the struggling mortgage lender's deposits. The move isn't surprising, considering U.S.-based lenders like Countrywide (NYSE: CFC ) and Accredited Home Lenders (Nasdaq: LEND ) have needed a little help lately themselves.
What is noteworthy, though, is that the Treasury chose to lean on U.S.-based Goldman for support. The Treasury's decision reflects Goldman's uniquely strong brand and history of proven results. Year to date, Goldman is up around 6%, but it is still off about 10% from its June high. Given their recent strong results, perhaps now is the time to see if Goldman or its I-banking peers like Lehman Brothers (NYSE: LEH ) or Morgan Stanley (NYSE: MS ) make sense for your portfolio.
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