Goldman Sachs (GS) Breaks Free From the "Whitney Effect"

For much of the last two years, the last three words that a CEO of a financial firm could stand to hear in reference to their stock was, "Whitney lowers forecasts."  Today, it appeared to be more of the same when Whitney's firm lowered Q4 EPS forecasts for Goldman Sachs (GS).  However, while GS saw a short term drop following the initial headlines, the stock not only recovered but it finished at its highs of the day.

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Comments

[TC]

Q: what sort of firm engages in business activity (synthetic CDOs) resulting in profound distress widely suffered in short order by its customers, taking a majority stake on the opposite side of the trade and massively profiting as a result, thereafter subjecting it to reasonable allegations of fraud?

A: a desperate firm with a voracious need for capital?

(Just a thought from an independent observer with absolutely no axe to grind, yet who is very bearish equities in general for the very reason that fraud has become such a mainstay of the financial landscape over the past 10+ years.)