Goldman may buy back stock

GOLDMAN Sachs investors may be in line for a capital return as it uses excess profits, analysts said yesterday.

The cash-rich US investment bank already has enough capital to meet its 2013 Basel III threshold as well as buy back $5bn (£3.08bn) in preferred stock held by Warren Buffett’s Berkshire Hathaway fund.

Goldman should have close to $7bn of free capital left afterwards, Nomura analysts said.
“Management should be able to effectively manage the firm’s capital base,” they said. “Share repurchases are likely.”