Deal Journal: How would you assess Goldman Sachs?
Wilhelm: Goldman has probably lost some of its cachet in terms of advisory services. It’s lost people over time to hedge funds. Effectively, what Goldman has been doing is working with people who have left the firm to provide services to them. Look at the profitability of its prime brokerage. That’s all service to hedge funds. You could look at it as Goldman outsourcing the human capital of trading. It’s really providing distribution and execution services for these guys.
Deal Journal: But come on, Goldman is still Goldman, right?
Wilheim: It looks more like a Citibank.
We know morale is down and everyone is FREAKED OUT about the prospect of their bonuses being reduced by 5% and more than a few of you are considering cutting your losses and ending it now, but name calling like this is really unbecoming of grown men (as are the tears, in public places).
Traders vs. Bankers: Breaking Up Wall Street Banks [Deal Journal]