Goldman Sachs's most senior employees, known as partners, have every incentive to put the firm's legal and political problems behind them, Hintz said.
He kept his "outperform" rating on Goldman Sachs. The stock fell $2.32, or 1.6 percent, to $138.41 at 9:55 a.m. in New York Stock Exchange composite trading. Goldman Sachs has declined 16 percent this year through yesterday.
"As politicians continue to criticize the firm and the public scrutiny persists, we believe that Goldman's clients will begin to rethink their relationship with the firm and the franchise will ultimately suffer," he wrote. "With approximately 17 percent of the ownership in the hands of current and former partners, this control group has ample motivation to make amends with politicians and the public in order to reduce the threat to its franchise."
In July, Goldman Sachs agreed to pay $550 million to settle a civil fraud suit by the U.S. Securities and Exchange Commission that alleged the firm misled clients about a mortgage-linked investment. The settlement, in which the company also admitted to making a "mistake," was agreed to three months after the firm's statement that the allegations "are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation."
Fabrice P. Tourre, the only Goldman Sachs employee who was also sued by the SEC in that case, hasn't settled that suit.