Monday, February 25, 2008
One of the biggest worries is Goldman’s large exposure to leveraged loans, which totaled $42 billion at the end of the firm’s last quarter, according to analyst calculations
Goldman also faces hefty losses on some of its large equity stakes. The most brutal could come from Industrial & Commercial Bank of China Ltd., whose shares have fallen 16% on the Hong Kong Stock Exchange since the end of November. That slide could translate into a financial hit for Goldman of roughly $400 million, based on figures provided in the firm's regulatory filings. Overall valuation losses on such large corporate investments could reach $1.4 billion, according to Mr. Trone.