Monday, February 22, 2016

"Goldman Sachs Says 40% of Its Lending to Oil and Gas Firms Is Junk""

On the K├╝bler-Ross scale of banking grief acceptance is one step before "write off".

From Bloomberg:
Goldman Sachs Group Inc. said about 40 percent of its loans and lending commitments to oil and gas companies are to junk-rated firms.

The figure, which counts both loans made and future promises to lend, accounted for $4.2 billion of a total $10.6 billion as of the end of December, the New York-based bank said Monday in its annual regulatory filing. Goldman Sachs has $1.5 billion in loans to energy companies rated below investment grade and $2.7 billion in unfunded commitments.

The total exposure jumps $1.9 billion counting derivatives and other receivables, which were "primarily" to investment-grade firms, Goldman Sachs said....MORE