Goldman Sachs CEO Lloyd Blankfein told employees that it’s business as usual for the time being following the UK’s vote on Thursday to leave the European Union.
In the content of the internal memorandum shared with me (and reproduced below) Blankfein and COO Gary Cohn said the firm had “had strong team focused on this potential result for many months.” Blankfein and Cohn said the firm has a long history of adapting to change and stated the firm would remain focused on its people and clients while working with relevant authorities as the exit terms become clear.
Here is the internal memo:
June 24, 2016
UK Referendum on EU Membership
As you may have seen by now, the British people have voted to leave the European Union, and we respect this outcome. We have had a strong team focused on this potential result for many months. There is no immediate change to the way we conduct our business. A process of negotiating the terms of the exit will now begin, and is expected to take a considerable period of time. Goldman Sachs has a long history of adapting to change, and we will work with the relevant authorities as the terms of the exit become clear. We are committed to our people and our clients, and will work diligently to ensure the best possible outcome. We will continue to communicate with you as relevant information becomes available.
Lloyd C. Blankfein
Gary D. Cohn
All of the banks with operations in the UK are putting out similarly noncommittal statements to their people in the wake of the vote and the market turbulence on Friday.
I suspect the 6,000 people employed by Goldman in London are no more assuaged than anyone else at the moment.
Now That The Dust Has Settled
Here are Hourly, Daily, and Weekly looks at the S&P Emini in the aftermath of “Brexit.”
60 Minute — It doesn’t look like much here, but this was a massive dislocation. Price rallied hard from the US cash open, but ultimately gave in to overwhelming sell pressure and closed just shy (relatively speaking of course) of the dead low of the day.
Daily — The daily chart looks ominous but…
Weekly — The jury’s still out on the weekly
As always, stick to your process and mind your risk… everything else will take care of itself.