Goldman feels the economic pinch
(21 October 2010 – USA) Conditions continue to remain "challenging" for United States investment bank Goldman Sachs, as economic uncertainty dampens third-quarter profits.
Trading revenues dropped by more than 33 percent in the third-quarter as the investment bank’s clients maintained their cautious position.
The bank’s chief executive officer, David Viniar, said that the operating environment during the third quarter was dominated by heightened uncertainty surrounding the global economic outlook.
The bank reported a drop in profit from US$3.19 billion last year to US$1.9 billion (A$1.96 billion).
Revenues fell 28 percent to US$8.9 billion.
Despite the shaky outlook the bank’s shares rose in afternoon trading by 2.7 percent.
Goldman Sachs employees are feeling the pinch also, with the bank expected to reduce its overall compensation pot by 30 percent from last year’s reported figure.
The bank’s chief executive officer, David Viniar, said that the operating environment during the third quarter was dominated by heightened uncertainty surrounding the global economic outlook.
The bank reported a drop in profit from US$3.19 billion last year to US$1.9 billion (A$1.96 billion).
Revenues fell 28 percent to US$8.9 billion.
Despite the shaky outlook the bank’s shares rose in afternoon trading by 2.7 percent.
Goldman Sachs employees are feeling the pinch also, with the bank expected to reduce its overall compensation pot by 30 percent from last year’s reported figure.
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