Federal Reserve Ends Enforcement Action Against Goldman Sachs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GS?
Source: seekingalpha
- Enforcement Action Termination: The Federal Reserve announced the termination of the 2018 enforcement action against Goldman Sachs, indicating improvements in the bank's compliance risk management, which may help boost market confidence.
- Fine Background: In May 2018, Goldman Sachs was fined $54.75 million for unsafe and unsound practices in its forex trading, highlighting deficiencies in internal controls and oversight of traders, prompting the company to enhance compliance measures.
- Regulatory Coordination: The termination of the enforcement action was coordinated with the New York State Department of Financial Services, reflecting regulatory recognition of Goldman Sachs' remedial actions, potentially creating a more favorable environment for future business development.
- Other Enforcement Actions: The Federal Reserve also terminated the 2015 enforcement action against Crédit Agricole, indicating ongoing regulatory scrutiny and dynamic adjustments in assessing financial institutions' compliance.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 905.750
Low
604.00
Averages
951.45
High
1100
Current: 905.750
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Stock Performance: The stock has gained in six of the last seven trading sessions and is poised to close above its 60-day moving average for the first time since February, with a 94.8% increase over the past 12 months, indicating robust market performance despite a modest year-to-date gain.
- Post-Earnings Reaction Potential: Goldman has settled higher after six of its last eight earnings reports, including a 4.4% rise in January, and the options market is pricing in a 5.8% move, significantly higher than the 2.6% average over the past two years, suggesting strong expectations for the upcoming report.
- Analyst Rating Upside: Among the 26 analysts covering Goldman, 17 have a “hold” or worse rating, indicating potential for upgrades and price target hikes, with the current 12-month consensus target price at $934.54, only a 3.8% premium to the current stock levels.
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- Enforcement Action Termination: The Federal Reserve announced the termination of the 2018 enforcement action against Goldman Sachs, indicating improvements in the bank's compliance risk management, which may help boost market confidence.
- Fine Background: In May 2018, Goldman Sachs was fined $54.75 million for unsafe and unsound practices in its forex trading, highlighting deficiencies in internal controls and oversight of traders, prompting the company to enhance compliance measures.
- Regulatory Coordination: The termination of the enforcement action was coordinated with the New York State Department of Financial Services, reflecting regulatory recognition of Goldman Sachs' remedial actions, potentially creating a more favorable environment for future business development.
- Other Enforcement Actions: The Federal Reserve also terminated the 2015 enforcement action against Crédit Agricole, indicating ongoing regulatory scrutiny and dynamic adjustments in assessing financial institutions' compliance.
See More
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- Optimistic Earnings Outlook: Goldman Sachs is set to report its Q1 earnings before the market opens on April 13, with a bullish sentiment reflected in a 4.2% stock price increase to $900.69, as investors respond positively to easing geopolitical tensions.
- Strong Stock Performance: The stock has gained in six of the last seven trading sessions and is poised to close above its 60-day moving average for the first time since February, with a 94.8% increase over the past 12 months, indicating robust market performance despite a modest year-to-date gain.
- Post-Earnings Reaction Potential: Goldman has settled higher after six of its last eight earnings reports, including a 4.4% rise in January, and the options market is pricing in a 5.8% move, significantly higher than the 2.6% average over the past two years, suggesting strong expectations for the upcoming report.
- Analyst Rating Upside: Among the 26 analysts covering Goldman, 17 have a “hold” or worse rating, indicating potential for upgrades and price target hikes, with the current 12-month consensus target price at $934.54, only a 3.8% premium to the current stock levels.
See More
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- Enforcement Action Termination: The Federal Reserve announced the termination of the 2018 enforcement action against Goldman Sachs, indicating improvements in the bank's compliance risk management, which may help boost market confidence.
- Fine Background: In May 2018, Goldman Sachs was fined $54.75 million for unsafe and unsound practices in its forex trading, highlighting deficiencies in internal controls and oversight of traders, prompting the company to enhance compliance measures.
- Regulatory Coordination: The termination of the enforcement action was coordinated with the New York State Department of Financial Services, reflecting regulatory recognition of Goldman Sachs' remedial actions, potentially creating a more favorable environment for future business development.
- Other Enforcement Actions: The Federal Reserve also terminated the 2015 enforcement action against Crédit Agricole, indicating ongoing regulatory scrutiny and dynamic adjustments in assessing financial institutions' compliance.
See More
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- Order Lifted: The Federal Reserve announced on Thursday the termination of a 2018 cease-and-desist order against GoldPREMIUM, indicating significant compliance improvements that may help restore the company's market reputation and client trust.
- Compliance Progress: The lifting of the order suggests that GoldPREMIUM has made positive strides in meeting regulatory requirements, which will aid in its future business expansion and enhance its competitive position in the market.
- Market Reaction: This news could have a positive impact on GoldPREMIUM's stock price, as investors may reassess its investment value, potentially leading to increased capital inflow.
- Strategic Implications: The removal of the order not only helps GoldPREMIUM rebuild its relationship with regulators but may also pave the way for future financing and partnership opportunities, strengthening its position in the precious metals market.
See More
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- Strait of Hormuz Status: The Strait of Hormuz remains effectively closed, indicating ongoing tensions in the region.
- Cease-fire Disagreements: There are significant disagreements among parties regarding the terms of the cease-fire established on Tuesday.
- Escalation of Conflict: The situation has escalated with the largest attack on Lebanon since the onset of the U.S.-led war on Iran in February.
- Perception of Ongoing Conflict: Observers may reasonably conclude that the conflict is still active given the current developments.
See More
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- Market Sentiment: U.S. stock markets have shifted from a state of euphoria to caution, with major indexes experiencing a decline.
- Oil Prices: There is a rebound in oil prices, indicating changing dynamics in the energy market.
- Risk Appetite: Investors are showing a reduced appetite for risk, reflecting uncertainty in the market.
- Cease-Fire Concerns: Ongoing questions regarding the stability of the cease-fire agreement in the Iran war are contributing to market volatility.
See More
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- New Family Office Launch: Farther has launched a multi-family office in New York aimed at ultra-high-net-worth families, intending to provide customized services through its unique wealth platform that meets client-specific needs.
- Strong Leadership Team: Former Goldman Sachs private wealth advisor Ben Seidenstein has been appointed as the global head, bringing extensive industry experience and client relationships from managing $1.5 billion in assets at Goldman.
- Technology-Driven Wealth Management: Farther's family office will leverage an AI-driven wealth platform, avoiding potential conflicts of interest compared to traditional institutions, thus offering investment solutions that better align with client needs.
- Market Opportunity Capture: Farther plans to capitalize on the anticipated generational wealth transfer trend, assisting families with wealth transfer and estate planning, while having no minimum asset requirements to attract more entrepreneurs and creators.
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