Talk about timing! I just finished yesterday that banks were behaving well and this 'Why I am Leaving Goldman Sachs' op-ed piece has gone viral. Basically it's now former employee Greg Smith's resignation. Smith for right/wrong reasons takes a less conventional method of resigning and does a Jerry Maguire on his former employer. Using the NY Times as his vehicle, he resigns via a public/scathing indictment on the culture at Goldman. If you haven't already, have a look.
That aside, everyone seems to love American banks right now. Premise being that US economy is improving and therefore interest rates are likely heading higher. Indeed tightening can be painful but rising rates in a healthy economy can actually be good for banks. Note many of the biggest/smartest guys in the room are agreeing here. See where Warren Buffet stands on the sector. A lesser known but extremely highly-regarded expert on the space Meredith Whitney (who presciently called the sector a disaster five years ago) concurs.
That's probably it for me this week. I'm off to London. Chat next week.
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