Amidst the Economic Turmoil, How did GS stand? 08 Annual Report

Have you taken a look at Goldman Sachs' 2008 Annual Report?....Gee they'd be able to convince you that you were dead. CEO Banks wrote in the letter to the shareholders most of the facts, however when covering aspects of total losses...he more or less diverted his attention to what they were doing to fix the problem, instead of ever going into the sheer facts and numbers of how bad this year was for them. Overall I would consider the letter to the shareholders a slick marketing piece, and the rest of the figures and data to be more economical and informative.

The annual report is posted right on the GS website. The document is 162 pages long. So unless you actually care, or are stranded on a desert island with only the annual report...it's not really that much fun to read. However, the report is very informative, goes into detail not just numerically, but it exquisitely specifies and explains all major and minor facets of the organization.

The letter to the shareholders came from CEO Banks. He starts the letter off explaining the overall impact the recession has had on our nation and specifically to the global equity and credit markets. After explaining the negative news of revenue drops of over 50%, Banks went on to articulate the changes and overall plan Goldman Sachs has created to excel during these difficult times.

Overall, the tone of the letter to the shareholders is one of honesty and positive outlook. Banks describes the facts and doesn't get caught up on the negativity, but rather gives promise to its shareholders that there is good to come and to keep their trust in them.

In a yahoo finance article that has since expired, it accurately depicted the view of Banks and was an appropriate summary of the letter to the shareholders. It portrayed it as if one of Goldman Sach's employees had been next to the journalist. However, it was easier to understand. Just like Banks, its purpose was to instill confidence, hope and promise to its shareholders. The bad news was mentioned, but not the focus of the piece. The quote from the CEO was about the company loss and also about the future of the company and how they have developed plans to escape the recession and not be a complete victim to the economic turmoil.

Overall, I believe that Goldman Sachs did a good job in their annual report. As a non-share holder and someone new in the world of investor relations, it was easy to understand and portrayed the company in a positive light amidst the negative state of the economy