Cassidy: Hard for Goldman to Replicate 2Q Results

The video discusses the performance of major Wall Street banks, focusing on trading and fixed income trading. It highlights the impact of the Brexit vote on trading volumes and volatility, and how banks like Goldman Sachs are adapting by reducing expenses and legal costs. The discussion also covers the challenges banks face in achieving a return on equity above their cost of capital due to high regulatory capital levels. The future outlook for banks depends on improved business performance and cost management.

What was a significant factor contributing to Goldman Sachs' strong performance in the second quarter?

• New product launches

• Lower interest rates

• Brexit vote

• Increased headcount

What strategy is Goldman Sachs employing to adapt to the new market reality?

• Increasing marketing expenses

• Reducing personnel and other expenses

• Raising capital levels

• Expanding into new markets

How did Goldman Sachs' legal costs change in the recent quarter?

• They increased significantly

• They were eliminated

• They fell substantially

• They remained the same

What is a challenge for big banks in the United States regarding return on equity?

• Declining customer base

• Lack of skilled workforce

• Increased competition from startups

• High capital levels due to regulations

What is necessary for Goldman Sachs to improve its return on equity?

• Higher interest rates

• More government regulations

• Higher legal costs

• Increased business activity