Goldman Unit Funded Compass Lexecon Raid, Suit Says - Law360 Employment Authority

Goldman Sachs is reportedly in talks to acquire Palmer Square Capital Management, a major issuer of collateralized loan obligations (CLOs) with $37bn in assets. Bloomberg sources note no decision has been made, and neither company commented. The deal would strengthen Goldman's position in the US CLO market, valued at over $1.3 trillion.

Goldman Sachs (GS) is in talks to acquire Palmer Square Capital Management, a credit-focused asset manager with $37B in assets, according to Bloomberg. The deal would bolster Goldman's asset management division, particularly in collateralized loan obligations (CLOs), where Palmer Square has a $27B platform. Goldman's CEO has indicated a focus on filling strategic gaps through acquisitions. GS stock fell 1.9% on the news.

JPMorgan Chase (JPM), Wells Fargo (WFC), and Goldman Sachs (GS) fell 1%, 3%, and 4% respectively after the Fed's rate hike, despite banks typically benefiting from such moves. JPMorgan's CEO warned of potential challenges ahead, including rising deposit costs and increasing card charge-offs. The Fed raised rates to 4% on September 17, 2026, the first hike in three years.

The Bank of England and US Federal Reserve are investigating global banks' exposure to trading firms following losses at Jane Street, linked to hedge fund Situational Awareness. The central banks seek details on risk management and trading activities. The SEC has also subpoenaed major banks, including Goldman Sachs and JPMorgan, over Situational Awareness' trading practices.

Goldman Sachs (GS) expects $70B revenue this year, up from mid-$30B in 2018-19, driven by diversification. Asset & Wealth Management exceeds high-single-digit growth, overseeing $4T in assets. Alternatives fundraising is targeted above $125B. Near-term results may face higher expenses and softer FICC activity. CEO David Solomon highlights growth in core businesses and AI-related financing opportunities.

Major U.S. banks, including JPMorgan, Bank of America, and others, raised their prime lending rate to 7% after the Federal Reserve's quarter-point rate hike. The move increases borrowing costs for consumers and businesses. Bank stocks fell, with BofA down 2.7%, Citi 2.4%, and JPMorgan 1%. Rate hikes may boost bank earnings but could also slow economic activity and impact credit quality.