Daily Banking Industry News
Wednesday 19th of November 2008

Banking Sectors:

By company:

By organisation:

Also see:

October 9, 2007

Goldman Sachs To Report Record Profits In Face Of Credit Crunch

by Stewart Douglas

Story link: Goldman Sachs To Report Record Profits In Face Of Credit Crunch

Goldman Sachs is expected to announce record profits for the 2007 year, in spite of the credit market turmoil that has sent so many of its competitors into hot water over the last few months.

The world’s largest investment firm (in terms of market value) reported earnings for the third quarter that were beyond 78% up on the previous quarter reflecting strengthening performance from its existing private asset management strategies.

The overall total revenue figure through the third quarter saw earnings up to just under $3 billion, in the face of strong losses across the board for the competition, including some of the more respected names in investment banking.

Merrill Lynch, UBS and Bear Stearns have all suffered significant losses as a result of over exposure to the sub-prime sector which has led to a perceived downturn in the investment banking sector over the course of the summer, particularly with share trading strongly down across the board as a result of a potential US recession and further problems in the banking and finance sectors globally.

Furthermore with credit becoming more of a premium commodity banks have been less willing to lend or finance corporate acquisitions, which would only serve to further stagnate the marketplace, their revival looks far from certain in the immediate future.

Many analysts have attributed the success of Goldman Sachs to the fact that it runs its business in the same way as hedge funds are traditionally run, attracting investment from private sources to manage and administer subsequently the proceeds of those investment strategies.

As compared to other firms which operate with more rigid structured agreements, this has allowed Goldman to establish itself as going against the grain to provide sustainable, manageable investment opportunities throughout the credit crunch environment and recent market turmoil.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: Goldman Sachs To Report Record Profits In Face Of Credit Crunch

Goldman Sachs Set Up Charitable Fund  ...

London job losses expected at Citigroup and Goldman Sachs  ...

Goldman Sachs Announce Q4 Profits  ...

GS Announces Up And Down Trading Over Q3  ...

UK jobs at risk as Goldman Sachs cuts workforce by 10%  ...

No Comments »

No comments yet.

Leave a comment


Previous: « Which? advises consumers on claiming back bank charges
Next: CGT Business Asset Taper Relief Axed To Bring Investment Firms In Line »

Visited 592 times, 1 so far today

Investment Banking News

Investment Banking Newss
Evolution Securities expands Fixed Income unit

Savings & Investment News



Employment News

Banking Employment & Jobs News
Baird establishes wealth management office in California