Goldman profits slump as financial woe continues

Source: Exec Digital USA

Date :9/16/2008 4:16:22 AM

Quarterly profits at top US investment bank Goldman Sachs have slumped as the market downturn continues.

The largest US investment bank, Goldman Sachs, has reported net income of US$845 million, or US$1.81 a share, for the quarter ended August 29, down from US$2.85 billion, or US$6.13 a share, a year earlier. Net revenue fell by half.

“This was a challenging quarter as we saw a marked decrease in client activity and declining asset valuations,” Goldman's Chief Executive, Lloyd Blankfein, said in a statement.

The results come as the credit crunch continues to claim victims. Lehman Brothers Holdings Inc filed for bankruptcy protection on Monday, September 15, while Merrill Lynch & Co rushed into the arms of Bank of America Corp.

Lehman last week reported a third-quarter loss of US$3.9 billion.