Goldman Sachs: No writedowns coming

Speaking at Merrill Lynch (of all places), Goldman Sachs CEO Lloyd Blankfein says the company is "confident" in the valuations for its $50 billion of risky and illiquid assets. Which suggests the firm will not be announcing any credit-inspired write offs, despite the many rumors. CreditSights went so far as to estimate that Goldman would have to take $5 billion in charges. Blankfein also said that the upcoming changes in accounting rules will not affect the firm's capital position. So all in all, Goldman Sachs is looking smug atop the industry--the only firm to avoid huge losses. But you still have to wonder about its hedges, which are still in place. Would the bank be able to cash out of these? I have to wonder who has the other side of the bets. In any case, it's still true: Goldman Sachs can't lose.  

For more:
- here's the MarketWatch article
- Cramer says to buy Goldman. Video

Related articles:
- Blanfein leads Goldman Sachs to new heights
- Another round of news coming for top banks?
- Rumors about Goldman Sachs intensify