Goldman Sachs shares have rallied 34% in the year since the bank disclosed an embarrassing $470 million loss resulting from the closure of Marcus personal loans, the bank's first foray into the sale of its ill-fated consumer banking. Up from $336 last April, the bank's stock reached an all time high of $470 in May, and is now priced around $452. Mike Mayo, the head of Wells Fargo Securities U.S. large-cap bank research, says the stock could cross the $500 mark in the coming year.
It's a far cry from a year ago when The Economist called Goldman a “Wall Street laggard” that had “lost its swagger.” Mayo credits Goldman’s rapid turnaround to the decision to cut its losses at Marcus and other consumer financial products and return to its core competencies banking big business.
