Goldman Sachs' Profit Nearly Doubles But Wells Fargo Down 50%

Mish

Goldman Sachs is outperforming other banks by stunning amounts.

Goldman Sachs' Hot Streak

The Wall Street Journal reports Goldman’s Pandemic Hot Streak Continues in Third Quarter

Key Points

Classic Explanation

Goldman has had a notably profitable pandemic. With a smaller lending book—about $112 billion to JPMorgan’s nearly $1 trillion—it is less exposed to defaults. And it is more heavily geared toward trading, which picked up this year as investors scrambled to reset their portfolios for a prolonged period of low interest rates and heightened economic risk.

Simpler Explanation

Goldman Sachs still does God's Work.

For those unfamiliar with the simple explanation please consider God's Work and Goldman's Prayer

While acknowledging the role of banks in the financial meltdown [of 2007-2009], the CEO of Goldman Sachs said recently he believes his company is doing "God's work."

My Version of "Lloyd's Prayer"

Our chairman who art at Goldman
Blankfein be thy name
Thy rally’s come, God’s work be done
In the Dow as it is in the Nasdaq
Give us this day our daily gain
And forgive us our front-running, as we punish those who frontrun against us
And bring us not under indictment
But deliver us from regulators
For thine is the cashflow, and the power, and the bonuses, forever and ever. Amen

Mish

Comments (30)
No. 1-14
Call_me_Al
Call_me_Al

This news is sure to inspire confidence in the state of the nation's economy! Surely the boon will trickle down to lesser financial institutions soon and then to the hourly workers in short order--and just in time for shopping season!

Maximus_Minimus
Maximus_Minimus

Isn't there a simple explanation?
Such as, Golden Sacks is a purely investment bank catering to the needs of the 1%, which is doing exceptionally well.
The other banks have commercial banking operations with dealings with main street, and that is not doing so well.
If memory serves, investment casinos didn't have access to FED emergency funds until 2009 when all caution was thrown to the wind in order to save the system from itself. Now they are confident that if they screw up big, there is a Santa Claus.

Eddie_T
Eddie_T

When you retire from Goldman you don't quit doing God's work..You can become a true saint like Stephen Mnuchin and run the Treasury.

Having previously worked for Goldman Sachs is apparently a pre-requisite for being Treasury Secretary. Not sure how far you have to go back in time to find a Treasury Secretary who didn't previously work for GS...but it has been a number of years.

And if you really do a good job....then you can become President of Harvard University....like Larry Summers...

One important thing to notice too....is it does not matter whether the President is a Democrat or a Republican....a Goldman alum gets the Treasury job either way.

Forgot to hit the #sarcasm button.

Herkie
Herkie

The bigger story Mish, the top 1% have increased their wealth by more than a trillion since March 18, to 34.6% of all household wealth, while the bottom HALF of the nation holds only 1.9% of household wealth.

No matter how you try to digest or rationalize this it means the future is going to se more and more converts to socialism. And I might remind you that the constitution does not dictate economic systems.

I am as opposed to socialism as any poster here including yourself, but because it is a fact that if we do not fix this inequality what we will end up with is all our worst nightmares, I am willing to be flexible enpough to diffuse the pending economic catastrophe. It already takes an ever more intrusive and powerful police presence with militarized cops to "protect" private property rights and it is going to get worse so the choice will be to fix it now as fairly as possible, or to go full police state. And if the police state blinks we will be Venezuela for real not just in the fevered minds of the far right dupes.

I do not know why I can't embed a tweet I saw on my timeline this morning, but @TravisAllen02 posted a tweet that said more people have filed for unemployment in 2020 than voted for Trump in 2016. Now that is a tweet I can retweet over and over. How dare the Trump supporters abandon all decency to back him, there is nothing left on this planet that justifies supporting that orange ape, he is destroying the nation.

Zardoz
Zardoz

The vampire squid have their magic Munchkin on the inside to attach feeder tentacles to the appropriate places, of course they're doing well.

Dodge Demon
Dodge Demon

Mish, what do you think about SW Airlines moving to ORD and the City “leasing” (selling) MDW to Bezos for 100 years?

Tengen
Tengen

Wow, those guys at Goldman must be smart! Maybe we should start putting them in Cabinet positions to turn our fortunes around!

TimeToTest
TimeToTest

In a side note food inflation came in a 13.3% annualized in September.

Winning.

Mr. Purple
Mr. Purple

Goldman Sachs -- The Vampire Squid

numike
numike

Robert Lighthizer Blew Up 60 Years of Trade Policy. Nobody Knows What Happens Next.
Trump’s trade representative joined the administration with one mission: Bring factory jobs back from overseas. The results so far? Endless trade wars, alienated allies, and a manufacturing recession.

Cocoa
Cocoa

The obvious explanation is:
-Goldman Sachs has access to money creation and government access. It manages the stock market with HFT Bots that assist the FED in pretending the markets are stabile. They get a little chip in return. Goldman Sachs has NOTHING to do with allocation of capital for the economy. However, Wells Fargo is a more traditional bank, and as such reflects the economy better. As in, there is no place to allocate capital without extreme risk. Wells would be a better indicator of the economy as it is more "part" of the investment of capital to grow the economy. Goldman Sachs just "breeds" money out of thin air for it's own benefit-and to help the facade we call the stock market. The stock market is just a publicity instrument for greed policy

wendmink
wendmink

When you risk-leverage people's savings by 15 times you make money until the crash then the people lose everything they trusted the bank for. Then you have a bank that doesn't risk-leverage everything they don't make that much money. In 2011 the evil DIMS said the law they are pushing - saving accounts need to be protect but the lying baster pass the law which did just the opposite. No surprise there, right??? Soulless do nothing Joe