Tuesday, July 20, 2010

Death and taxes

Goldman Sachs profits plunge 83%

''Goldman Sachs’ quarterly profits plunged from a year ago, the company reported on Tuesday, as revenue slumped and the bank set aside more than a billion dollars for the UK bonus tax and its historic settlement with US securities regulators. “The market environment became more difficult during the second quarter and, as a result, client activity across our businesses declined,” Lloyd Blankfein, Goldman’s chief executive, said in a statement.''

Posted by hpwatcher @ 02:55 PM (3955 views)
Please complete the required fields.



5 thoughts on “Death and taxes

  • ”Goldman Sachs’ quarterly profits plunged from a year ago, the company reported on Tuesday, as revenue slumped and the bank set aside more than a billion dollars for the UK bonus tax and its historic settlement with US securities regulators.

    “The market environment became more difficult during the second quarter and, as a result, client activity across our businesses declined,” Lloyd Blankfein, Goldman’s chief executive, said in a statement.

    EDITOR’S CHOICE
    Goldman’s Tourre denies fraud charges – Jul-20In depth: US banks – Jun-14Watchdog bares its teeth at Goldman Sachs – Jul-18US bank results worry investors – Jul-16Citigroup manages to remain in the black – Jul-16BofA profits hit by weak mortgage revenues – Jul-16Net income after preferred stock dividends were paid plunged 83 per cent in the second quarter to $453m, or 78 cents a share, from $2.72bn, or $4.93, in the year earlier period.

    Net revenue fell 36 per cent to $8.84bn, paced by a sharp decline in equity trading.

    Goldman recorded a $600m charge for the UK payroll tax and paid $550m to settle the US Securities and Exchange Commission’s charges that the bank misled investors in a mortgage-backed structured security it issued as the credit markets hurtled toward crisis.

    The settlement, reached last Thursday, had helped erase some of the declines Goldman’s shares had endured since the regulator first filed its complaint in April. But by early Tuesday morning in New York, investors’ attention appeared to return to the challenging environment most of Goldman’s businesses faced in the past three months.

    The stock fell 2.3 per cent to $142.34 in pre-market trading.

    Revenue from trading and principal investments, the bank’s growth engine for more than a decade, dropped 39 per cent to $6.55bn. Equities slipped 62 per cent to $1.2bn, while fixed-income, currencies and commodities trading fell 35 per cent to $4.4bn.

    Investment-banking revenue declined 36 per cent to $917m. While underwriting activity slumped, Goldman reported a 28 per cent gain in revenue from its mergers-advisory arm.

    The bank’s asset-management and securities services arm recorded revenues of $1.27bn, down 11 per cent from a year ago. ”

    Reply
    Please complete the required fields.



  • holding out says:

    God moves in mysterious ways his wonders to perform – so much for doing gods work.

    Reply
    Please complete the required fields.



  • Yeah right. I don’t believe this for a moment, spending money on hard assets that don’t see the light of day as usual no doubt.

    When you are skilled enough to dump BP shares just prior to the main event you can call yourself a ‘real trader.’

    Coldmen Sharks indeed.

    Reply
    Please complete the required fields.



  • clockslinger says:

    The only statistic that strikes me as remotely shocking in this is the fact that the penalty imposed by the Securities and Exchange Commission is a miniscule percentage of profits and even a tiny percentage of just ONE QUATERS profit of GS least effecient theft enterprise, their investment banking, this alone being $917m in the quater!
    Now (just to get a sense of comparison of the laughable system of “justice” we enjoy in the free world) if you earn about 18k and go out this evening and break the window of, lets say, that particularly annoying branch of Halifax BOS, in a fit of entirely understandable and well directed rage, you will find that, on a susequent conviction for “criminal damage”, YOUR financial penalty (fine, costs, compensation and victim surcharge) will, as a proportion of your disposable income, even as a first time offender, be orders of magnitude higher than that paid by GS from even one tiny part of their profits. Any court, any judge, knows the punishment needs to fit both the damage wrought on society by the crime and the means of the offender. Perversely, this is why you, an entirely worthless being, having no political influence or vast sums of cash to bring economies to their knees, starve the poor or appoint plutocrats and furnish their armies, can be made an example! One war…class war, as Ian Bone used to say!

    Reply
    Please complete the required fields.



  • They have clearly depressed their earnings deliberately to avoid bad press, particularly in the US. Expect a bounce back in future quarters.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>