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
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
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