Not too long ago, we were still talking about Goldman Sachs as the gilded bank that could do no wrong--the only investment bank to weather the credit crisis. But then it was forced to turn itself into a bank holding company, and everything seemed to change. Now, it seems likely that it will face a $5 a share loss in the fourth quarter. Just a few months ago, analysts were expecting a gain of $1.62 a share.

So what gives? Well, the issue seems to be valuations of debt and other securities. Various mortgage assets will likely be written down, as will its stake in Industrial & Commercial Bank of China, which has fallen nearly 30 percent in the fourth quarter. Goldman owns a $26 billion private equity portfolio. This bodes ill for other banks, who may feel pressure to do likewise. All in all, Goldman faces a tough stretch at a time when its strategy appears to be unformed.

For more:
- here's the Business Week article 
- Meanwhile, Gerald Corrigan will likely chair its new bank holding company

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