Goldman Sachs (GS: 176.78, 1.51, 0.86%) CEO Lloyd Blankfein has told people that he and his firm are so hated that he has gotten as much as 75 to 100 pieces of hate mail in a single day. But being the most despised firm in the financial industry may not be the firm’s biggest problem. Instead, what is keeping Blankfein and his senior management team up at night is the future of Goldman given all the new regulations that are likely to come out of Washington in the coming months.
Goldman, of course, isn’t alone. As Congress creates new rules designed to limit risk taking, and preventing banks from becoming too big to fail, every major firm is facing an uncertain future. Will they be forced to scale down as regulators are prodding Citigroup (C: 4.05, 0.03, 0.75%) and Bank of America (BAC: 17.269, 0.237, 1.39%) to do? And how much capital will they have to keep on hand if they engage in risky trading activities? (more)
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