Why Goldman's Blankfein May Refocus on Costs

The transcript discusses the challenges faced by banks in a cyclical industry, focusing on cost-cutting strategies as a response to declining revenues. It explores whether these challenges are cyclical or indicative of a longer-term trend, considering the regulatory environment post-financial crisis. The discussion includes a comparison of Goldman Sachs and Morgan Stanley, highlighting their strategic responses to a shrinking trading revenue pool. The analysis suggests that while the industry is contracting, opportunities remain for banks with strong core businesses.

What are the potential long-term trends in the banking industry as discussed in the text?

In what ways does the speaker suggest Goldman Sachs might differentiate itself from other banks?