Goldman (GS) Doubling Common Stock Sale To $5 Billion

Goldman Sachs, emboldened by the market reaction to its $5 billion deal with Warren Buffett, is doubling the size of its common stock sale to $5 billion. Bloomberg:

The bank increased the size in a so-called accelerated book-building…

“The endorsement of Warren Buffett should quickly end credit market debate about the capitalisation and liquid position of Goldman Sachs,” Brad Hintz, an analyst at Sanford C. Bernstein & Co. who rates Goldman stock market perform, said in a note to clients today.

The increased share offer will likely fuel speculation that Goldman has its eye on a major commercial bank. $10 billion in fresh capital would make Goldman one of the best capitalised firms on Wall Street, putting it in prime position to do a deal with another lender.

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