Egan-Jones Downgrades Goldman From AA To AA-

[hvactec]

10/18/2011

Just out by the only rating agency that is even remotely credible.

Goldman Sachs Group Inc/The: EJR lowered AA to AA- (S&P: A) (GS)

Synopsis: Across the valley - GS recorded $2.96B in investing and lending losses and a $378M decline in IB revenues, totaling a $3.34B decline. Hence, the total loss of merely $393M is respectable. Furthermore, given the political pressure, now is not the time to show robust results. The major issues facing GS is the cost of complying with the Volker rule (look for some changes or exemptions from the proposed rule), changes in senior management (to appease Sen. Levin) and a still weak IB and trading environment.

read more Egan-Jones Downgrades Goldman From AA To AA- | ZeroHedge

 

[editec]

Much of these "losses" is paper losses only.

Changes in accounting procedures accounts for most of it.

These are not out of pocket costs, I'm informed.