Bove: Self-serving For Goldman Sachs To Go Out And Say Its Biggest Competitor Should Be Broken Up

Rafferty Capital Bank Analyst Dick Bove spoke with FOX Business Network’s (FBN) Liz Claman regarding recent Goldman Sachs comments suggesting JPMorgan breakup their business. Bove stated, “I think it’s pretty self-serving for Goldman to go out and say its biggest competitor should be broken up,” and, “it doesn’t make any sense.” On if Goldman Sachs needs to buy an Asset Manager, Bove said, “no, I don’t think they have to,” since “Goldman Sachs has a wonderful model.”

Dick Bove on Goldman Sachs saying JPMorgan needs to be broken up:

“I think it’s pretty self-serving for Goldman Sachs to go out and say its biggest competitor should be broken up. We had a very spirited conversation with Goldman Sachs in the last couple of days over this issue asking them why Goldman Sachs shouldn’t be broken up because of the same economics that impact JPMorgan, if you will, impacts Goldman Sachs. So what is the rationale for Goldman Sachs if you will, taking up a brick when they live in a glass house, it doesn’t make any sense.”

Vanguard’s move into PE may change the landscape forever

Private equity has been growing in popularity in recent years as more and more big-name funds and institutional investors dive in. Now even indexing giant Vanguard is out to take a piece of the PE pie. During a panel at the Morningstar Investment Conference this year, Fran Kinniry of Vanguard, John Rekenthaler of Morningstar and Read More

Dick Bove on if Goldman needs to buy an Asset Manager:

“No, I don’t think they have to. I think Goldman Sachs has a wonderful model and that model is being driven by investment banking and I think that investment banking was very good in 2014 and it should be actually better in 2015 once we get through the turmoil in the market.”