Reuters reports that Goldman analysts and associates - the two most junior ranks in investment banking - have been pooled together to work on deals across industries such as healthcare, private equity and media, according to an internal memo.
In the meantime, Goldman analysts say that new bank regulations and capital requirements are 'structural' changes to the industry that are more to blame for declining profits than the U.S. economic slump.
Bloomberg reports that analysts led by Richard Ramsden in New York wrote in a report published Tuesday that 'the operating environment is unlikely to change any time soon, and we see shareholders of challenged banks becoming more demanding in asking management teams to lay out a path to unlocking value in the near term'.
Their view contrasts with Goldman CEO Lloyd Blankfein, who said in November, 'I don’t think we can conclude that the slowdown is secular rather than cyclical change'.
Finally, Reuters reports that Goldman was not paid a $20m fee it billed for advising El Paso Corp on its more than $20bn sale to Kinder Morgan, after the investment bank was accused of a conflict of interest in the sale.