Goldman Tops $3B in Profit, Blows By Estimates

Bank triples profit last year, sets $5.3B aside for pay, bonuses

By Jason Farago,  Newser Staff

Posted Oct 15, 2009 7:13 AM CDT

(Newser) – Goldman Sachs is even more golden than we'd thought. The top firm on Wall Street posted a record third-quarter profit of $3.19 billion, a billion dollars higher than expected, thanks to returns on advising on takeovers and more aggressive investing. That quarterly result more than triples the $845 million it posted this time last year. As for the big question of compensation, the bank said $5.35 billion was going to salaries and the year-end bonus pool, up from last year.

"Their biggest challenge and the thing that seems to get the most press is how much they put aside for comp expense," one financial analyst tells Bloomberg. "A year ago we were talking about whether they would survive and now they just have too much damn money."

Business people congregate in front of Goldman Sachs headquarters, Wednesday, Oct. 14, 2009 in New York. The bank posted a third-quarter profit of $3.1 billion, beating estimates.
Business people congregate in front of Goldman Sachs headquarters, Wednesday, Oct. 14, 2009 in New York. The bank posted a third-quarter profit of $3.1 billion, beating estimates.   (AP Photo/Mark Lennihan)
Richard Genna, left, of Goldman Sachs directs trading for an IPO on the floor of the New York Stock Exchange, Thursday, Sept. 24, 2009, in New York.
Richard Genna, left, of Goldman Sachs directs trading for an IPO on the floor of the New York Stock Exchange, Thursday, Sept. 24, 2009, in New York.   (AP Photo/Henny Ray Abrams)
Lloyd Blankfein, Chairman and CEO of The Goldman Sachs Group, at the Clinton Global Initiative in New York.
Lloyd Blankfein, Chairman and CEO of The Goldman Sachs Group, at the Clinton Global Initiative in New York.   (Getty Images)
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