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Why Goldman's risk may bring rewards
Recent results from some of the world’s biggest banks are letting the markets decide who’s best at managing risk.
Morgan Stanley has been taking a safer route, concentrating on wealth management and retail brokerage, while Goldman Sachs has been sticking to an older, arguably riskier model, with more exposure to capital markets and currency trading.
Shock results from Germany’s largest lender Deutsche Bank have underlined the dangers of debt trading, about a third of its business relies on fixed income revenue, which fell by 31% in Q4 year on year.
However, longer term, as the global economy recovers it’s Goldman’s risk taking reputation that has investors backing the bank, as best placed to benefit most.
01:56 minutes
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