Goldman Profit Almost Triples
Most of the profit came on its own holdings
By Newser Editors and Wire Services
Posted Jan 16, 2013 9:27 AM CST
In this March 15, 2012 photo, a trader works in the Goldman Sachs booth on the floor of the New York Stock Exchange.   (Richard Drew)

(Newser) – Goldman Sachs' earnings almost tripled in the fourth quarter, handily beating analysts' estimates, as investment banking revenues surged. The Wall Street titan earned $2.83 billion after paying preferred dividends, compared with $978 million a year earlier. The bank's debt underwriting business profited from a rally in bonds and a surge in demand for debt securities. Goldman's debt underwriting business earned $1.96 billion in revenues for the year, its second-best annual performance and the highest since 2007.

"While economic conditions remained challenging for much of the last year, the strengths of our business model and client franchise ... delivered solid performance for our shareholders," Lloyd Blankfein said in a statement. The bank cut jobs, but paid the people remaining more; its compensation costs rose 6% to $12.94 billion, but its headcount fell 3% to 32,400. That means that the average employee at the bank earns almost $400,000 a year.

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Showing 3 of 6 comments
Tology
Jan 17, 2013 11:01 AM CST
Their profits tripled, while anyone with money in the market lost. Someone is selling short and driving the market down.
MisterPlinkett
Jan 16, 2013 11:09 PM CST
THIS is what you get from an Obama administration. Everyone else is tanking while the mega banks thrive. Good jobs liberals, 8 more years of Bush is exactly what this country needed.
$4565535
Jan 16, 2013 11:44 AM CST
If all I cared about was making money, I would invest in these guys and Apple. But I can't give them my money in good conscience given their history of criminal activity.