...Leading Investment Banking Franchise: The Goldman Sachs Group, Inc.s (Goldman) ,,A/F1 rating reflects its extremely strong domestic and international franchises as demonstrated by leading positions in mergers and acquisitions and equity and debt underwriting. Higher Capital Markets Focus: Goldmans strategy to focus on its core franchise strengths has resulted in a higher reliance on capital market operations than many of its global trading and universal bank (GTUB) peers. At YE13, capital markets revenues represented 63% of Goldmans revenue, relative to an average of 31% for the five U.S. GTUBs. Capital markets revenues are inherently volatile and susceptible to declines in difficult market periods. Strong Risk Management: Fitch Ratings believes that Goldman has a comparatively strong risk management organization and systems to monitor risk, as demonstrated by its ability to effectively manage risk during periods of market stress. An enhanced risk management framework is viewed as appropriate...
