Goldman Sachs CEO takes the view that the United States to avoid further risk of the proliferation of mortgage institutions

The U.S. economy has been weak recently because of two major mortgage institutions - Fannie Mae and premises of the United States and the deteriorating financial position has been further drag, this new outbreak of the crisis on the dollar's rally, the United States and the global capital market confidence in the impact. In response, Wall Street famous investment bank Goldman Sachs Group chairman and chief executive officer louder »Bei Lanke the Vatican said recently in Beijing in an exclusive interview with this reporter that the U.S. government need to make further efforts to circumvent the crisis in mortgage institutions Proliferation.

Crisis has spread further

Reporter: Fannie and premises of the United States in trouble mean that the loan-to-the further spread of the crisis »How do you evaluate the federal government two shots mortgage relief agencies»

Bei Lanke Vatican: just when housing prices started to decline when the most affected is the secondary mortgage loan borrowers is less income and wealth that some people, after this spread to other parts of the housing market And cause an impact.

Fannie and premises of the United States have a lot of housing mortgage loans, and the federal government has long played a role in public policy tool, so the two agencies and the state of the U.S. federal government and the interests linked to the Ministry of Finance, so the market is to see The. So in any case, the U.S. government will not turn a blind eye to their difficulties, the U.S. Treasury Department's statement is tantamount to a guarantee. Now, although the specific relief measures have not yet introduced, but the market believe that the Government will give its loans and credit support, so that the Goldman Sachs is.

However, I believe, in the Ministry of Finance statement, the U.S. Government has also affirmed the need for further measures to help Fannie Mae and premises of the United States truly restore position in the market, the mortgage institutions to prevent the spread of the crisis. Even if the debts are repaid, investors in making investment decisions, also still have to look at other aspects of the two companies the value of the stock and the future profitability.

Benefit from diversification

Reporter: The previously announced quarterly report shows that in this crisis, Merrill Lynch and Lehman Brothers and other Wall Street to line encountered setbacks, Goldman Sachs is why can maintain better performance »

Bei Lanke Vatican: Goldman Sachs in a crisis better performance because the company is developing a good plan, of course, more fortunate. We have problems of the region than any other small banks, but no problems after hesitation and immediately be wiped away.

Goldman Sachs is the first to achieve multiple types of business operations, other investment banking business problem we have, but we still have a lot of good business performance. In addition, Goldman Sachs business in all regions of the world wide distribution company performance is also important to maintain good reason, the Chinese economy still maintained a rapid growth, while the Latin American region is only by the crisis, the loan-to-mild radiation, we have in these two regions , But also Europe, the Middle East and India have a considerable volume of business. At present, the contribution of income to Goldman Sachs more than half of the business in areas outside of the United States launched.

Bear Stearns acquired useful financial system

Reporter: How do you evaluate Morgan Chase's acquisition of Bear Stearns »

Bei Lanke Vatican: JP Morgan Chase acquisition Bear Stearns for the U.S. financial system and JP Morgan Chase are themselves useful. First, the crisis in the U.S. financial system can not afford Bear Stearns as the scale of the company brought about by the collapse of the tremendous impact followed by the JP Morgan Chase, Bear Stearns is a rare quality acquisition targets, the company and JP Morgan Chase business will be formed to strengthen and add useful. But Bear Stearns investors may not be happy, but the acquisition is better than the company closed down completely.

Reporter: last month came news of the Lehman Brothers bogged down in difficulties, in your opinion, whether the company has followed the steps of Bear Stearns may »

Bei Lanke Vatican: Each company is different, between Lehman Brothers and Bear Stearns as well. Compared with Bear Stearns, Lehman Brothers, the larger, and more diversified business and international. Moreover, the Fed now also allow investment banks to the discount window, so that Lehman Brothers as a very good company, there is no reason to repeat the mistakes Bear Stearns.

Reporter: Will the U.S. market often reported a lot of bad news and lead to company share prices plummeted, the U.S. Securities and Exchange Commission (SEC) recently announced that it will initiate an investigation against a number of institutions to make use of spread rumors manipulation of stock prices, you can feel that this is a Results »

Bei Lanke Vatican: For the financial services industry in the company, they do not have the time to prove that the false news, but if investors lose confidence in the market can not support too long. Therefore, rumors for the financial services industry in terms of companies is very dangerous, especially if the rumors are a part of some people deliberately fabricated. SEC's statement will prevent agencies spread rumors manipulation of stock prices, they need to do is actually two things: first determine whether the rumors said true and then let people know, spread the rumors so that they will be in trouble.

Source: China Securities News