GOLDMAN SACHS RECEEDING

More saving and costs cutting, more prudence and more financial discipline are the order of the day. Goldman Sachs has been humbled by the current worldwide financial crisis and the tumbling of their stock price. The largest U.S. securities organisation has since become a bank holding company. Drastically scaling back on investment banking activities and shedding thousands of staff in the wake of the present economic difficulties, gripping it and other large banks, is the usual initial outcome for early remedy. Goldman Sachs executive have also given up their bonuses to help the ailing company. At this very moment, every single cent counts and even a little help, surely, cannot hurt. The focus is to cut costs and promote real recovery. It should also be receiving a $10 billion bailout package from the U.S. congress, but will that be enough to keep matters in check?

Analysts at Goldman Sachs predict the U.S. recession to deepen even further and unemployment to hit around 9% at the end of 2009. This gloomy outlook has prompted financial companies to re-evaluate their positions and exercise caution. With the markets in chaos and the domino effect of bank woes, banks are returning to traditional and more clients focussed financial methods. Have Goldman Sachs and the other financial giants, such as JP Morgan and Citigroup Services, reaped what they have sewed? Sewing the seeds of greed has led them to their ultimate collapse and demise.

The objective is to learn from previous mistakes and try not to repeat them.