2023-10-18 11:14:59
The investment bank Goldman Sachs, which has been off the road to success since its record year in 2021, is only finding its footing with difficulty. But despite a decline in profits and the worst result compared to competitors such as Citigroup, Bank of America and Wells Fargo, Goldman Sachs still earned a good $2 billion net in the third quarter of 2023. Commerzbank will perhaps achieve that much in the whole of 2023; it would then be the best result in its history.
Johannes Ritter, Zurich Published/Updated: , Recommendations: 12 Hanno Mußler Published/Updated: , Recommendations: 15 Hanno Mußler Published/Updated: Recommendations: 4
But Goldman is measuring itself against its biggest rival JP Morgan, which is playing in a completely different league with a quarterly profit of a good $13 billion this time. In view of such towering net profits, the question also arises as to whether competition has not been disrupted. Are a few banks so powerful that they can dictate prices to the detriment of their customers?
Headwind from the cartel office
Ultimately, JP Morgan has such a high market share that the largest US bank actually doesn’t get any acquisitions approved by the antitrust office for good reasons. But it is still fresh in the memory that during the crisis on the US regional banking market in the spring of 2023, JP Morgan offered itself as a savior to the state and took over the reeling First Republic. This very asset manager now contributed more than a billion dollars to JP Morgan’s quarterly profits. UBS has also caught a big fish in Switzerland with Credit Suisse. The high profits of international banks should make people listen up.
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