End of an era: Goldman to post first loss?

November 3, 2008 | By Jim Kim

Hard to believe, but Goldman Sachs has never posted a loss as a publicly traded company. That, however, may soon change. Glenn Schorr, analyst at UBS, predicts a loss for the fourth quarter. You have to think that others may follow. Advisory revenue will no doubt be weak. Trading may not be much better. Prime brokerage seems a bit uncertain as hedge funds adjust to the new environment. Schorr notes the likelihood of some big writedowns. Financial Week notes that the bank's investment in Industrial and Commercial Bank of China, for example, which was worth $2.6 billion as of last quarter, may be worth about $900 million less. Principal investments overall could take a $3.4 billion haircut. Writedowns for commercial real estate and residential mortgage exposure may also be coming. Schorr expects a per-share loss of 40 cents.

For more:
- here's the Financial Week article