Due to the fact that Goldman Sachs is now a regulated national bank, I believe this is going to have a short term negative effect on their stock. GS was able to attain stock prices over $200 a share due to their ability to be highly leveraged as an overall firm. Becoming a bank is not going to afford them the ability to be as leveraged as they once were. It will take some time to determine what the long term impact of this decision will have on Goldman's share price, but in the short term, I do not anticpate it running above $135 a share. There is way too much uncertainty in the market.
$121.32 (10/07/08)
