On Air Now

Upcoming Shows

Program Schedule »

Listen

Listen Live Now » 100.7 FM Terre Haute, IN

Weather

Current Conditions(Terre Haute,IN 47807)

More Weather »
43° Feels Like: 43°
Wind: NNE 0 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Today

Partly Cloudy 70°

Tonight

Mostly Clear 41°

Tomorrow

Sunny 71°

Alerts

Goldman CFO says industry will have to produce better returns

(Reuters) - Goldman Sachs Group Inc Chief Financial Officer Harvey Schwartz said on Tuesday that Wall Street banks will have to produce higher returns for shareholders, and may need to cut staff further in order to do so.

"The industry will migrate to higher returns because it will have to," Schwartz said at a Credit Suisse conference in Miami, adding that investment banks may do so by taking "excess capacity" out of the industry.

Schwartz, who took over the CFO role at the end of last month, declined to provide a specific return-on-equity target for Goldman Sachs or a time frame for getting returns up to an adequate level.

Last year, Goldman delivered a return-on-equity of 10.8 percent. Schwartz said that was good on a relative basis, but not "aspirational for the long term." The measure is important to shareholders because it measures how much profit a bank can wring from its balance sheet.

"Shareholders are demanding more accountability," he said.

(Reporting By Lauren Tara LaCapra; Editing by Gerald E. McCormick)

Comments