Goldman sees opportunities in Europe's bank woes

(NEW YORK) - US investment bank Goldman Sachs sees a silver lining in the troubles of Europe's banks, which may need to sell more than $2 trillion in assets, a top Goldman executive said Thursday.

European banks, pressed to bolster their capital cushions, are expected to dispose of $607 billion in assets this year, the majority of them in soured debt, said Gary Cohn, president and chief operating officer of the prestigious Wall Street bank.

They could divest another $243 billion in assets in 2013, and $147 billion the following year, Cohn said at a Sanford Bernstein strategy conference in New York.

According to Cohn, Europe's total bank deleveraging could exceed $2 trillion and Goldman Sachs is "well-positioned to intermediate these asset sales."

"We believe that Europe and the growth markets will present compelling opportunities for the firm," he said.

Cohn said the assets put up for sale were expected to be under-pressure debt securities backed by distressed assets.

Asked about a potential breakup of the eurozone amid severe financial strains, Cohn recalled that Goldman Sachs had "dramatically reduced" its European exposure.

He said the Wall Street giant had pored through its portfolio of assets "contract by contract and position by position" to understand the effect of any change in the currency.