How do banks classify and manage risks during the underwriting process

Introduction:

The Goldman Sachs’ group is being founded in the year 1869, which is a leading group of investment banking. The company has delivered a wide range of financial services to the base of substantial and diversified client which is comprised of financial institutions, corporations, individuals as well as government(Valverde et al., 2016). This is the firm which is being headquartered in New York and the office is being maintained across the world in the major centres which is being dealing with the finance. The company also markets within and clear transactions with the client over the major stocks, the options as well as the future exchanges over the world (Valverde et al., 2016).

Case Study of Goldman Sachs:

The strategy as well as the structure of Goldman Sachs which has protected the company from the financial crisis is being explained in the case study of the Goldman Sachs. The company is being saved from the financial crisis that is being experienced by the entire investment companies in the year 2007(Pacelli, 2016). Goldman Sachs had experienced serious threats because of the subprime mortgages. The company has been capable of sustaining the losses and has been profitable amounting $11.6 billion which has been recorded among all the other companies like Bear Sterns, Merrill lynch, Lehman Brothers. The shared price of the company has also marked the record hikes. The employees as well as the executives also earned substantial revenues (Pacelli, 2016).

Reference:

Valverde, S. C., Solas, P. J. C., &Fernández, F. R. (Eds.). (2016). Bank Funding, Financial Instruments and Decision-Making in the Banking Industry. Springer.

Pacelli, V. (2016). The Case Study of Goldman Sachs. In Managing Reputation in The Banking Industry (pp. 79-99). Springer, Cham.