NEW YORK, July 16 Analysts pressured Goldman
Sachs Group Inc Chief Financial Officer Harvey Schwartz
on Tuesday to disclose how close the bank is to meeting new
leverage ratio requirements proposed last week by regulators.
In a conference call, eight analysts asked questions about
the ratio, but Schwartz refused to provide an estimate of where
"Our first assessment is we're very comfortable with where
we are," he said, later adding that "the only reason I'm not
being more specific about numbers at this stage is the team
really hasn't had the time to go through the kind of diligence
that we would normally want them to."
Schwartz also cautioned that the rule is not final, and may
change before being implemented. As it stands, banks will have
to hold equity capital equal to 6 percent of total assets at
bank subsidiaries and 5 percent of total assets at broader
holding companies by 2018.
CLSA analyst Mike Mayo questioned Schwartz aggressively
about the lack of disclosure, asking him to give some kind of
"What I hear you saying is, 'Trust us, we will be there,'"
said Mayo. "On the other hand, you're not disclosing a number
like your peers have done and perhaps other peers will do. So on
a disclosure basis, you're behind peers."
Other large banks that have reported earnings in recent
days, including JPMorgan Chase & Co, Wells Fargo & Co
and Citigroup Inc, have all made disclosures about
estimated leverage ratios under new rules.