Goldman Sachs Still Raking-In The $$$
Cited: CNN
Goldman Sachs may have found itself at the government’s doorstep just a couple of year’s ago as the banking crisis supposedly threatened the financial stability of Wall St’s biggest financial casino. But, it seems that things are getting much better for the investment bankers at Goldman, who reported today that earnings in the fourth quarter of 2011 topped $1 billion. And as hard as it is to fathom, the earning results for Goldman actually fell short of analysts forecasts despite reversing losses posted in the third quarter of 2011. A spokesman for Goldman Sachs said that a large portion of the profits generated in Q4 2011 came from reduced salaries at the firm.
Goldman said that salaries and bonuses paid out in 2011 declined by 21% to $12.2billion though it doesn’t appear that any Goldman execs will have to put their homes on the market anytime soon as the average salary at the financial giant is still approximately $367,00 down from $430,000 in 2010. Goldman also achieved the profitably fourth quarter by cutting its staff by 7%.
Net revenues reported were approximately $6 billion, which were higher than in Q3, but a bit lower from 2010 when the firm reported net revenues of $8.6 billion for Q4 2010. One of the biggest culprits behind the loss of revenue for Goldman came from the mergers and acquisitions group which saw a drop-off in business of some 43%. Goldman is also quick to point out that expenses were also held in check in 2011 vs. 2010 while also making a decrease in their litigation expenses a priority.
Goldman’s earnings report was well-received by the market with their shares gaining 1% following the press release.
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My take:
I have to hope that the government made a lot of money on their loans to Goldman or else something is dangerously wrong with the system. These guys asked for the biggest “Mulligan” of all-time, got it, and now they are lighting their cigars with $100 bills again. It’s always the same………
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