A Tale of Two Banks

Profits at Goldman Sachs (GS) were up 79%. The company earned $6.13 a share, far more than the $4.35 Wall Street was expecting.

“They dominate the business in so many different ways,” said Michael Vogelzang, who helps manage $2.3 billion, including Goldman shares, as president and chief investment officer at Boston Advisors LLC. “Goldman will tell us what the state of the industry is because they have their hands in most of this stuff.”

Meanwhile at Bear Stearns (BSC), profits dropped 61%.

“Bear Stearns is in the worst shape on Wall Street because it has the most exposure to fixed income and least to international markets,” said Matt Albrecht, a New York-based equity analyst at Standard & Poor’s who recommends selling Bear Stearns shares. “Their reliance on the mortgage market isn’t going to help as that market continues to roil.”

Posted by on September 20th, 2007 at 10:39 am


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