Our overall take on Goldman Sachs is that, given the lower amount of leverage the bank is able to employ under the current regulatory regime, it is very difficult for it to replicate the mid-to-high teens return on equity it put up in the go-go years leading up to the Global Financial Crisis. Goldman Sachs is now a bank holding company and is trying to add deposits to bring funding costs down toward those of their money-center peers. This is a difficult ask and a long road, though we note it has certainly made progress bidding up for deposits.
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