Senate Democrats are preparing for a third procedural vote to advance a sweeping financial reform bill. Assuming a bill is passed, how will it impact Goldman Sachs and the other major financials? Eric Thorne, investment advisor at Bryn Mawr Trust Wealth Management, shared his views.
Goldman Sachs Chief Executive Lloyd Blankfein and trader Fabrice Tourre appeared before a Senate subcommittee on Tuesday and faced a slew of angry accusations.
Thorne addressed the political ripples:
“The regulations are going to be tremendous going forward and Goldman has a lot of work to do to restore their reputation,” Thorne told CNBC.
Thorne said although the new regulations may hurt the industry “somewhat,” the big banks are “very strong companies” and will survive.
“If you look at the market values of these companies, Goldman is selling at where they did two months ago price-wise so the smart money is saying that Goldman gets past this bad news, they move on eventually," he said. “The smart money is betting that Goldman and its peers actually get through this period.”
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No immediate information was available for Thorne or his firm.