The current economic turmoil is one of the worst he has ever encountered in his career, Goldman Sachs chairman and COO president John Waldron said, echoing the positions of JP Morgan chief Jamie Damon for an impending “financial hurricane”.
In particular, according to Reuters, the president of Goldman said at a banking conference that the current economic environment is among the most complex, “if not the most dynamic I have ever seen in my career.”
“Obviously we have gone through many cycles, but the number of simultaneous vibrations in the system, for me is unprecedented,” he said.
It is noted that the comments of John Waldron came a day after the comparison of the current financial situation with a “hurricane” by the CEO of JPMorgan Jamie Damon.
For his part, the chairman of Goldman Sachs said he would not like to use weather analogs, but stressed that there are a number of unprecedented phenomena affecting the economy, from commodity shock to unprecedented levels of monetary and fiscal support.
Despite the challenges, however, J. Waldron said the bank is confident it will meet its performance targets as it continues to seek redemption opportunities, seeking to enrich its portfolio with different sources of revenue.
In this context, he argued that “valuations become more meaningful, they become more interesting. Something that gives us the opportunity to look at more things.”
Goldman’s COO stressed, however, that the priority is to limit current acquisitions, adding that the bank is now more cautious in its moves given the current macroeconomic environment.
According to Reuters, Goldman seeks to diversify its operations to make it less vulnerable to capital markets cycles. As part of this strategy it has focused on the arms of asset and property management.
Regarding the bank’s activities in the stock market, J. Waldron appeared cautious, saying he expects a big drop, while for the merger and acquisitions sector he noted that he is more resilient.
Source: Capital
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