(Bloomberg) -- Goldman Sachs Group Inc. shares are on track for their biggest gain in 15 years. The good times might be only getting started, according to its CEO.
The incoming Trump administration “appears to be one that’s going to be running a growth-y playbook, which will be good for Goldman Sachs,” Chief Executive Officer David Solomon said Tuesday at a Reuters event. “I am quite optimistic that this administration is going to run a very very pro-growth agenda.”
Solomon pointed to the expectations for a new business environment that will likely come with lower regulatory expectations, which will boost asset prices and encourage transactional activities — the key ingredients for turbo-charging his firm’s business.
“It appears that we are going to swing that pendulum back a little bit that will favor more investment,” Solomon said on expectations for a light-touch regulatory regime.
Shares of major US banks leaped higher the day Donald Trump won election, with investors counting on lower taxes and deregulation delivering a boost for the industry. Goldman has been at the forefront of that charge this year, with its stock up 53%, the most among the largest US banks.
The new policies could pave the way for an environment friendlier to banks. Benefits are likely to accrue across business lines with Trump tapping Cantor Fitzgerald chief Howard Lutnick to run the Commerce Department and hedge fund manager Scott Bessent for Treasury.
“I know Scott, and I know Scott has great insight into markets and capital flows,” Solomon said. “We are very, very excited to work with the new economic team.”
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