Again, Goldman Sachs landed in the spotlight, this time after JPMorgan downgraded the firm suggesting it’s best days may be behind it.
Well behind it, in the near-term.
On Wednesday, analysts knocked Goldman to ‘Neutral’ from ‘Overweight’ saying they think shares are fully valued right now and that upside is limited as the bank faces regularly overhaul from the Dodd-Frank Act.
Specifically, they say "Goldman Sachs potentially has the most to lose from new regulation," a reference to the Volcker rules, which restrict banks from trading with their own capital.
Documents released earlier in the week showed Goldman’s prop trading profits, which includes the bank's bets with its own money -- accounted for nearly 30 percent of pre-tax earnings in the first three quarters of 2010, according to Reuters.
"I see the concerns for the short-term valuations," says Anthony Scaramucci of Skybridge Capital on CNBC's Fast Money. "The bulk of their profitability comes from their prop trading."
However, he points out that the JPMorgan note isn't necessarily bearish on Goldman in the long-term. The note also said, Overall, it is difficult to argue against Goldman Sachs's employee talent pool.”
In fact Scaramucci thinks that talent poll makes the stock is a 'Buy' if you have a longer time horizon. "They have a great management team, and a deep bench. It’s a fantastic franchise," he says.