A recent Economist article highlighted the due to declining return on equity and declining top line revenue. What do you think is in Goldman's future?
Since 2009 revenues have dropped by a quarter; they remain below where they stood a decade ago. Even in a good quarter, such as the one just completed, its return on equity barely exceeds single digits. "Principal transactions", ie, proprietary, produced $25bn in revenues in 2009 and $18bn in 2010 but only $5bn in 2015. The decline is a result of new rules that limit these activities--and regulators threaten more.