Goldman Sachs 1Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“later in the quarter, market sentiment was mixed at political uncertainty in Europe and U.S. began to resurface…In aggregate, as the quarter progressed, these concerns impacted both client activity and risk appetites.”

” Another uncertainty that has occupied investor’s minds is the potential impact of regulatory reform on our industry. While everyone would like clarity, it’s natural for these rules to be developed over multi-year timeframes especially given the complexity and the potentially significant ramifications for the global economy. As a firm we remain a constructive participant in these discussions.”

“these are exceptionally complex rules. So obviously incredibly critical, not just with the financial institutions that will limit the rules, but really quite frankly more broadly in terms of their impact on the capital markets and given the complexity I think it’s quite natural that these are going to take time to implement. And the regulators themselves it’s a massive amount of work that they have to go through to get to a place to introduce these rules. So I think this process in terms of the time its taking, I think we would love to – I think everyone would like to have the final rules set in front of us, clients would certainly want that, we would want that, our constituency would want that, but I think its very natural and on balance, I think that can improve the quality of the rule making, which to-date is what we’ve seen for example in clearing. I think it’s a good thing on balance.”

[in response to a question about Goldman’s new Business Development Company] “That’s very much just part of our asset management strategy where we’re managing assets on behalf of our clients as a fiduciary. We obviously have asset core competence in there, credit risk management skills, so no this — that has nothing to do with Volcker.” [;)]

“it feels like there’s reasonable market share opportunity given the environment”

“I think some of the volatility we have seen particularly in commodities it looks more like liquidation of crowded positions. So, I wouldn’t read too much into it.”

“In terms of talent, quite frankly it feels like one of the better market environments we’ve seen in quite a long time. Our ability to acquire and add people to our team seems pretty good.”

[on the differences between global regulation] “I think generally speaking for the rules that have been proposed versus how they’ve been finalized, they generally start in one place. There’s been engagement with market participants and they generally have migrated to a place that’s better for the capital markets.”

Note: the word “client” appeared 53 times in the transcript

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