Wachovia (WB) may have hired Goldman Sachs (GS) to help it offload its shamble of a loan portfolio, but that doesn’t mean (apparently) that Goldman gets special treatment from its research department.
WB analyst Douglas Sipkin downgraded Goldman from “Outperform” to “Market Perform” today on macro concerns. In Sipkin’s defence, he insisted that Goldman remained the “top name” in investment banking, but broader economic problems will trouble the banking industry as a whole:
Slowing economic growth in the face of still strong commodity prices especially oil prices will likely keep capital markets activity muted for the foreseeable future. As a result, we expect the group to continue to stagnate.
Sipkin maintained his outperformed ratings on Morgan Stanley (MS) and Raymond James Financial (RJF).
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