According to these firms, Goldman is well positioned to recover in capital markets and indulge in M&A amidst economic recovery. In spite of some regulatory issues, these firms expect Goldman to provide greater returns in investment banking and trading business in the intermediate to longer term and are expected to be backed by the company’s well-capitalized position, flexible in buying back shares and long-term record of prudent risk management. Moreover, these firms believe though significant headwinds remain, including an uncertain regulatory environment, a weak economy, the sovereign debt crisis, and lower trading revenue, Goldman is still the premier franchise in the global capital markets. They also believe that when activity levels would return, Goldman will be able to recover losses, and therefore maintained a positive stance.