Goldman Sachs "Beats the Street" With Revenue Down 13%, Income Down 21%

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Goldman Sachs leads the way this quarter on "beat the street" silliness.

Quiet Quarter Hurts Goldman’s Results

The Wall Street Journal reports Quiet Quarter on Wall Street Hurts Goldman’s Results

Goldman Sachs Group Inc.’s GS -3.82% first-quarter profit fell sharply as trading and underwriting slowed, showing the urgency of the firm’s pivot away from those unpredictable Wall Street businesses.

The bank’s profit of $2.25 billion, or $5.71 a share, was 21% lower than the same period a year ago. Revenue fell in three of Goldman’s businesses and was flat in its fourth. Cost cuts and lower taxes helped profits top muted expectations, but shares still fell more than 3% in afternoon trading.

Goldman is in the midst of a multiyear effort to diversify away from trading, where profits have dwindled since the financial crisis. It is growing a consumer bank, developing a cash-management product for corporate treasurers, partnering with Apple Inc. on its first credit card and building data services it hopes will lure new types of trading clients.

But the pivot is a slow one. The bank’s first-quarter results show that, for now, Goldman is stuck in limbo, spending more than $1 billion on the new initiatives while still tethered to old standbys that are struggling.

Goldman Sachs Cuts Bonus Pot

The Guardian reports Goldman Sachs Cuts Bankers’ Bonus Pot by 20%.

G$WTIColdman Sachs has slashed 20% from the cash it sets aside to pay bankers’ bonuses after reporting lower profits in the first three months of the year.

The Wall Street firm said it was cutting its salaries and benefits pot by $798m (£609m) to $3.3bn, a move that will hit executives, senior managers and lower-level staff.

The bank is also dealing with the fallout of the 1MDB scandal, which has involved multiple investigations into corruption at the Malaysian sovereign wealth fund. Goldman said it has set aside $37m to cover legal and regulatory costs for the period.

Welcome to earnings season.

Mike "Mish" Shedlock

Comments
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RonJ
RonJ

"Goldman Sachs leads the way this quarter on "beat the street" silliness."

It is really all a massive financial fraud, when it comes down to it.

UBS kept a strong buy on ENRON until 4 days before it declared bankruptcy. Half a dozen brokerage analysts put a simultaneous buy on Google just before it dropped some 70 dollars a share. They all knew the stock was going to tank, yet told the public to buy it.

The CEO of KB Homes was Kudlow and Cramer for the purpose of pumping the stock, while he was in the process of dumping the stock.

Bullard manipulated the market, making a public statement that QE shouldn't end. in the midst of a summer decline.

Bernanke pulled in the slosh- liquidity, during the financial crisis, leading to a crash while a 700 billion dollar bank bailout bill was being discussed in congress.

Oh, and isn't insider trading by members of congress, legal?

RonJ
RonJ

Has Goldman stopped abusing Kermit?

Who was that former Goldmanite who said clients were referred as Muppets?

cbide
cbide

Bull markets created by central bank money creation does not need Wall Street research. Technology has reduced commissions to zero. If the market keeps going up because of the Ultimate Central Bank Put, investors do not need help from research. After the Volker Rule prohibited Goldman from trading their own account, a straight up bull market and venture capitalists providing looser funding requirements than IPO's who needs Goldman? On the other hand, if it's true that during major recessions money goes to its rightful owners, a bear market will make Goldman necessary again.

ksdude
ksdude

Back to the ole lower the bar tricks.