It's still not at the high elevated levels it might have been at the beginning of the year, but CEO confidence in the dialogues we're having has certainly improved. We maintained our number one position in both announced and completed M&A league tables by a meaningful margin. Our ratio under the advanced approach increased 10 basis points to 12.4% as higher capital was partially offset by higher RWAs due to a full quarter impact of increased market volatility. Mike Mayo -- Wells Fargo Securities -- Analyst. And despite the stress, the firm emerged from the second quarter stronger and continues to serve clients from a position of financial and competitive strength, and with the objective of producing attractive returns for our shareholders. Just this week, we have closed on over $6 billion of commitments. Betsy Graseck: (01:01:48) I hate to say it that way, but does it? Next, let’s review loan growth and credit performance across the firm. $130 million of investments related to technology and new businesses, including Apple Card and PFM, and $100 million in CIE expense, which should decline as we harvest these investments. By the way, I say that not just simply in the context of an attractive market valuation in which to sell, but equally in the context of the kind of broader, strategic mission we've been on which is to lower the balance sheet intensity and capital intensity of that as we shift to more third-party investing itself. Goldman Sachs is a firm that offers the opportunity to make an impact at a very early stage in your career so that’s something we always want to hear from you. You essentially have laid out a transparent plan for the business. And so I'm just curious if the mentality is that as you execute on the plan over time, the price will just take care of itself or maybe getting to a point where it makes sense to take more of a stand around the stock, just given that it has implications for how you run the business. The precipitous decline in rates, but not a corresponding decline in deposits will lessen some of the savings. Please go ahead. Steven Scherr: (47:10) Given the uncertain macro environment, we are focused on serving our clients to help them navigate this evolving backdrop. I'm just curious if that implies any focus and shift in the business or just any color around implications there to strategy or how the business is run. That is not something that traditionally we had. David Solomon: (03:04) And on our $16 billion private equity portfolio, we generated gains of more than $400 million from various positions, with the majority driven by events, including corporate actions such as fundraisings, capital markets activities and outright sales. Brian Kelin-Hanzel: (01:23:21) On the forward, our risk managers will remain in a conservative posture, given the uncertain trajectory of the virus and early stages of the recovery, to ensure we are well-positioned to proactively support our clients. Thanks for the question. We don’t have enormous market share aspirations, but we will grow this business we believe nicely over the medium term, and it will make a meaningful … it will make a reasonable contribution to the overall diversification of Goldman Sachs. So I think that’s accelerated at much faster pace than we expected. The total annual income you provide does not have to be exact but it is important to be as accurate as possible. In this segment, we produced $1.5 billion of revenues in the third quarter, up 13% versus a year ago, driven by higher Wealth Management AUS and higher Consumer Banking revenues. You know Mike, the only thing I would add to David's comment is that I think that on the forward, we're going to continue to look at strategic value locations as areas where we can grow and develop a number of different businesses, particularly the newer ones. That’s an investment we started two years ago that was paying dividends, but I think what you saw given the increased volatility and the heightened activity on the part of our clients, we saw an acceleration of the benefits of some of that investment during the course of the end of the first quarter and the second quarter. In a year where there were very, very low PCLs, the difference between those two ratios is very little. But I continue to believe that we have big platforms, we have scale, we have leadership positions. As a result of that, as we highlighted in our opening commentary M&A volume, M&A announced M&A transactions in the second quarter were down 75%. Stephen will then discuss our third quarter results in detail. Since the crisis hit, our market shares in investment grade and high yield have increased globally driving our number four ranking in global debt underwriting. When I look at illiquid this is an area where, from a risk point of view, we use market opportunities to lower, for example, commitments made in the deals book and took that book down and took risk down and position ourselves now to take on more risk in through the second half of the year, to the extent that those opportunities present themselves. Stephen is there anything you want to add to that? You've talked about going down market into the middle market. They rely on us. At quarter end, our allowance for credit losses for both loans and commitments stood at $4.3 billion including $3.7 billion for funded loans. David: (01:23:42) David: (01:08:41) Now importantly, when you look at the private portfolio, $284 million of that $642 million was generated on events, so that's sales, monetizations, IPOs and the like. Funded consumer loan balances remained stable at $7 billion, of which approximately $4 billion were from Marcus loans and $3 billion from Apple Card. So obviously our motivation is to free up that capital and deploy it elsewhere around. Our core businesses are performing well and many of our new initiatives are advancing ahead of plan. Since there are no more questions, I’d like to take a moment to thank everyone for joining the call on behalf of our senior management team. Returns were extraordinary, super attractive, and we were able to move that around as the kind of flexible organization that we like to think of ourselves as. Our allowance for funded loans increased 120 basis points to 3.7% for our $105 billion accrual portfolio, including an allowance for wholesale loans of 2.8%, and for consumer loans of 17%. On a more structural plane, and thinking back to the $1.3 billion of expense reduction that we articulated, frankly, I think we come at that number now with greater confidence in that number and frankly, the ability to exceed it over the medium to long term. Additionally, our partnership with Apple continues to grow and we look forward to leveraging our credit card platform for additional partnerships over time. Steven Scherr: (26:49) Your next question is from the line of Mike Mayo with Wells Fargo Securities. I'm just looking to balance client franchise with any risks associated with it. In spite of the ongoing challenges, we are seeing higher global equity markets and tighter credit spreads perhaps as a reflection of the speed of economic recovery. So what are you advising clients? We also saw sustained volumes across our automated bond pricing engine. The provision of $278 million includes wholesale impairments of approximately $230 million, primarily relating to select credits in the TMT, Industrials and Natural Resources sectors. David: (01:01:42) David: (01:09:13) So the growth in the deposit channels overall has been really, really positive. I would say the performance of the trading businesses in the third quarter, frankly like it was in throughout most of the first part of the year was really done with an eye toward high velocity turn on balance sheet. How to handicap the outcome of that is an impossibility, and so it is why, not withstanding that petition, we continue to engage in self-help and look to remedy this on our own terms. Copies of the so-called Hillary Clinton Goldman Sachs transcript began making the rounds in mid-February 2016 when a number of fake news websites published a satirical “transcript” of Clinton’s speech. This marks the first quarter in which we exceeded $2 trillion in assets under supervision. This call is being recorded today, July 15th, 2020. Mike Carrier: (58:53) I'll be writing my answer based on my own experience of GS (Goldman Sachs) and of others in the subsequent years. Please go ahead. You put 1MDB behind you. In New York, we've seen a gradual uptick since Labor Day with roughly 2,000 people working in office as of last week. Just curious on how much of that, what percentage do you own Goldman Sachs not the private client. We've said before, and I'll say again, that we run roughly with a 50 to 100 basis point buffer. And so in the short term, it's hard for me to speculate. Goldman Sachs Group Inc Q1 2019 ... well, I'll ask it in a different way. And then on cost, very strong core cost control X litigation of the quarter, I believe you mentioned you’d expect more non-comp benefit in the back half. I think death rates follow by about four weeks per an expert that we had on the call. So as each of the communities where we operate reopens, we are taking the necessary steps to gradually return to office in a safe manner. Equity investments produced $924 million of net gains in the second quarter, aided by asset sales and a significant rebound in the value of public equity positions. BREAKING NEWS: Goldman Sachs Employee Releases Paid Speech by Hillary Clinton By Andrew Kashen This reporter has recently come into possession of a transcript of a speech given by Hillary Clinton to Goldman Sachs in October 2013. But we’re in the very early stages. David: (01:21:12) And are roughly $900 million increase in litigation. Steven Scherr: (42:10) Turning to equities, net revenues for the third quarter were $2.1 billion, up 10% versus a year ago. In the third quarter, we produced net revenues of $10.8 billion, up 30% versus a year ago. During this difficult time, we remain dedicated to executing our strategy in our core business and driving forward the new initiatives and operating efficiency programs we laid out in January. Thanks. Our provision for credit losses in the second quarter was $1.6 billion up $650 million versus last quarter. Meanwhile, U.S. labor markets continue to show headline improvement with the unemployment rate declining to 7.9% in September, down nearly 50% from peak levels in April reflecting approximately 13 million people out of work. Has anything changed there in terms of pricing, market share, and the client’s needs for you? Image source: The Motley Fool. You've landed an interview with Goldman Sachs.Well done: you're in a minority. This call is being recorded today, April 15, 2020. Mike Mayo: (01:09:48) Stephen made comments with respect to the pickup in our backlog. Then thinking about your comments on the M&A market, interesting and very helpful about the pickup and dialogue in the last six weeks. And so I just want to think a little bit about how you guys talk about the stock price internally. So what happens in the forward, it’ll purely be a function of what plays out in the market and whether certain of these macro economic indicators worsen or improve from here, and that obviously will flow through our model and dictate the level of provisioning we take. Steven Scherr: (40:33) But it is our intention to maintain our dividends, both common and preferred while complying with the SEB rule upon implementation. And while we set out the objective of doing about a hundred billion dollars of raise in and across a range of different funds I think we all have an expectation that we’ll exceed the $20 billion target we thought we would get to this year and look to revise targets across all of this as, and when we think it appropriate, but this is good forward progress and we’re very determined to see it. We remain confident in our financial position, capital base, and liquidity, which set the foundation for our ability to serve our clients through this challenging time. David: (54:41) On the financing side of the business overall, it’s important to bear in mind financing in FICC was up about 71%. At the same point, there’s been a whole bunch of activity that we could have never imagined would have occurred because of the virus and the economic consequences of the shutdown. Steven Scherr: (22:21) And so we’ll remain quick on our feet as it relates to this, but I just want to give you a sense of what the forward direction is for the firm itself. Obviously a vaccine would be a meaningful step forward with respect to that. So both responding to the need for intermediation and positions, deploying capital against it, and equally being responsive to the possibility of the market inflating such that VAR increases in the context of inflated, notional positions with particular credits. Transaction banking will be a fee-generating proposition. If you go back strategically, one of the reasons that we were very confident in building this platform is, we were a big customer of other institutions, and we saw a need based through our own experience, and we’ve really put together what we think is a very, very friction-free, digital platform that advances the connectivity that clients have to their financial institution and ease of use in very, very meaningful ways. Okay. Sure. Heather Kennedy Miner — Head of Investor Relations. One of the things that I believe very strongly and that we've been driving toward as a management team, since we took over as a management team two years ago, was getting the way we talk about the business to be set up in a way where we could transparently talk about our different big business platforms and to have those businesses aligned with the way we were running the business internally. Dislocated asset prices will help drive those opportunities as well the significant amount of private capital available for deployment. This is Heather Kennedy Miner, Head of Investor Relations at Goldman Sachs. But any additional color you can provide there? We continue to be very committed to that plan. This transcript should not be copied, distributed, published or reproduced, in whole or in part, or disclosed by any recipient to any other person. I mean, is this the peak or I guess sufficient reserve for go-forward losses? In fact, last year we made an acquisition in United Capital that we think accelerated our expansion into high-net-worth wealth in a meaningful way. Now, as that continues, we’ll work to protect those share gains, but I’d also highlight, I still think there’s upside for us when I look across the hundred largest players in that business. Steven Scherr: (01:05:21) In Global Markets, client engagement remained high as we gained share during the year and enabled clients to manage risks across asset classes. Good morning. Great. Good morning, Steven. What is most impressive is that our first close occurred in less than 90 days entirely via virtual meetings. Good morning. David, thanks for the question. Steven Scherr: (46:18) To execute the plan, we leverage the intellectual capital of our division and the network of Goldman Sachs. Meaning we’ve seen fed funds come down by about 150 basis points, but we haven’t experienced corresponding beta on the downside in the retail deposit channel. We were pleased to announce our new small business lending partnership with Amazon, which will allow us to leverage our proprietary digital underwriting decision platform using data shared by Amazon third party sellers to provide inventory and operational financing to support their growth. Can you give us some more color on what you're hearing from corporates and sponsors? Convertibles also had record activity where we ranked number one. I'll start and Stephen might give some more granular detail but I'd say at a high level, Michael, I appreciate the question. Our allowance for funded loans was stable versus last quarter at 3.7% for our $100 billion accrual portfolio, including an allowance for wholesale loans of 2.8% and for consumer loans of 16.1%. Steven Scherr: (01:15:59) All right. Good morning. My name is Dennis, and I will be your conference facilitator today. Our total quarterly operating expenses of $6 billion increased 6% versus last year with compensation expenses up 14% year-over-year amid higher revenue growth net of provisions and non-compensation expenses down 2%. I know you said you expect to manage to about a 13% to 13.5% CET1 ratio over time. Steven Scherr: (44:03) Just looking at the stock, the price is down $20 year-to-date. We would expect our progress to accelerate under more normal circumstances. They have worked tirelessly during this time to engage and serve our clients, leverage technology to ensure our resiliency and prudently manage our risk and financial resources, with that, I’ll turn it over to Steven. Thank you. Heather Kennedy Miner: (01:17) We are optimistic on activity across a broad set of sectors including TMT, FIG, Consumer, Healthcare and Industrials. But other than that, it would be hard for me to say anything more at this point. I think one of the things that's going on in the crisis is people are seeing that there continues to be efficiency and scale. Dennis: (00:02) Thanks Christian. We benefited from an improving market backdrop, high levels of client engagement, continued countercyclical performance in market-making and positive momentum across our strategic initiatives. It’s been about 10% of the total portfolio that has taken up forbearance. Thank you, David, and good morning. In cash, we helped clients execute across both high and low touch channels. David Solomon: (05:36) Total client assets increased to $2.1 trillion, up approximately $ 240 billion versus the first quarter and up nearly $400 billion versus a year ago. Hello. We’re following the lead of our Asia colleagues, where in Hong Kong, we’re using a split-team approach with up to 50% working from the office. Our private portfolio remains highly diversified with over 800 positions, where excluding Global Atlantic, given its announced sale, none are larger than $425 million. In our consumer portfolio, provisions of $305 million increased versus last quarter, reflecting $220 million of reserve built and $85 million of net charge offs. We've employed a number of new protocols to operate as safely as possible around the world. On the right side of the slide we reflect our $30 billion lending and debt investment portfolio, which includes $17 billion of loans that are predominantly secured and $13 billion of debt investments. Next, let's turn to expenses on page 12. I think that what we need to do is set ourselves up to be in the service of clients and avail ourselves for the benefit of our shareholders of the opportunities as they present. Well, I appreciate the question, Michael, and there are a number of things going on that we’ve highlighted, but to summarize or maybe put it in a different context that frames your question, one of the things we’ve done over the last two years is we thought very, very carefully about our global markets franchise, the way we wanted to center that franchise, which was really around our clients, we invested in a one GF approach that we’ve talked about that really tries to improve the client experience for our clients across that franchise. Looking forward, our Investment Banking backlog increased significantly versus the second quarter. This performance amidst the volatility of the last several months is the product of many years of strategic focus and investment in our client franchise. Now that may be a function of work-from-home and the disposition of those clients, but we're seeing a growing presence. But I think our strategy as articulated and Investor Day, and frankly speaking, what I described in the past toward reducing down capital intensity of our balance sheet investing are all part and parcel of our ability to take down what is otherwise meant to be represented in the peak to trough in the SCB. We maintained our leading global position in M&A as announcements increased in the quarter from a relatively dormant period earlier in the year. With that, let’s now turn to our business performance on page four, beginning with investment banking. Well, my short question is, as you are the number one advisor. Miner, you may begin your conference. It leaves us with a coverage ratio about 3.7%, which I think is roughly in line with where the market is and accurately reflecting risk that’s there. 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