Goldman Sach (GS) could face $2 billion losses in the Q4 of 2008

According The Wallstreet Journal today, Goldman Sach (GS) could face its first losses since it went public offering in 1999 by as much as $2 billion losses in the fourth quarter ended on November 30. Analysts polled by Thomson Reuters, on average, forecast Goldman will lose $1.06 per share for the quarter.

On November 3, Merrill Lynch analyst Guy Moszkowski predicted Goldman Sachs Group Inc (GS) will likely post a fourth-quarter loss, its first ever as a public company, due to the "stressed" equity environment over the past two months, which will also weigh on Morgan Stanley's (MS) quarterly results.

The Journal report said Goldman could face other write-downs as well, such as on its investment in Industrial & Commercial Bank of China. The Chinese bank's stock fell nearly 28 percent during Goldman's fiscal fourth quarter, which will likely lead Goldman to take a write-down of about $700 million on its stake in the bank.

A spokesman for Goldman declined to comment, noting that Goldman does not provide earnings guidance and does not comment on outside forecasts.

Goldman has received $10 billion as part of the government's $700 billion bank investment program.

Sources :

1. The Wallstreet Journal: Goldman Faces Loss of $2 Billion for Quarter, December 2, 2008
2. Business Week: Ahead of the Bell: Goldman Sachs faces $2B loss, December 2, 2008, 9:09AM ET

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