"As we said at the end of the third quarter, we continue to be net short in these markets," Blankfein said in response to a question about the firm's position. "We said at that time we continue to be bearish on the sector." ... Blankfein, 53, said his firm has "a pretty good grip" on the valuation of its so-called Level 3 assets, which are the most difficult to value. Assets that fall into the category include private equity and real estate investments, leveraged loans and mortgage-related securities.Goldman holds some $50 billion in illiquid investments, and analysts had speculated that Goldman wouldn't be able to avoid the write-downs that have plagued every one of the firm's major competitors. The stock bounced in mid-afternoon trading, rising 6.5 percent to $228.66.
Goldman Sachs: No Big Mortgage Hit Coming
A bit of good news for the mortgage finance industry today, as Goldman Sachs CEO Lloyd Blankfein said in remarks Tuesday that the investment bank will not take a significant hit tied to turmoil in the mortgage-related securities markets. From Bloomberg: