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Goldman Sachs Announces New Investment Research Ratings System

NEW YORK – The Goldman Sachs Group, Inc. (NYSE: GS) announced today a new stock rating system to be implemented by its Global Investment Research Division during the fourth quarter of the year. The revised system follows a series of initiatives the firm outlined on May 21 st to ensure the quality, objectivity and integrity of its investment research. These changes are in line with, or in addition to, guidelines and requirements put in place by the Securities and Exchange Commission and other regulatory bodies, including The New York Stock Exchange and National Association of Securities Dealers.

The system will include three ratings: (1) Outperform; (2) In Line and (3) Underperform, to be assigned to the stocks within each analyst's coverage universe, on an unweighted basis with respect to market capitalization. The firm is establishing Regional Investment Research Review Committees (representing the Americas, Europe, Japan and the Asia-Pacific regions) that will approve all initial ratings, and any changes thereafter. The firm is also establishing a Global Investment Research Policy Committee, comprised of Suzanne Nora Johnson and Andrew Melnick, co-heads of Global Investment Research, the regional research directors and other senior members of the division that, among its responsibilities, will monitor the distribution of ratings.

Goldman Sachs will also introduce a Current Investment List, focused on timely investment opportunities for its investor clients. To add a stock to the list, approval of the appropriate regional investment research review committee is necessary. Listed stocks will have 12-month price targets, and will be removed automatically after 90 days. Only after receiving approval from the regional investment research review committee can stocks be reinstated to the list – to maximize the currency and value of the list as an investment tool.

Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.




Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

Background: The New York Stock Exchange (NYSE) today proposed changes in corporate governance and disclosure practices for NYSE-listed companies. The NYSE recommendations include increasing the role and authority of independent directors, giving shareholders greater opportunity to monitor and participate in corporate governance, establishing new control and enforcement mechanisms and improving the education and training of directors.