Goldman Sachs Traders Ride the Stock Market Rally, Equity Trading Revenue Jumped 26% in Q4

Goldman Sachs, America’s largest investment bank reported better than expected fourth quarter earnings Tuesday with profit up 51 per cent. The bank reported a profit of $2.01 billion, or $5.48 per share, for the latest quarter, compared with $1.33 billion, or $3.32 per share, a year earlier. Goldman’s equity traders were on the right side of the recovery in markets. Goldman’s equity trading revenue jumped 26 per cent in the fourth quarter. Revenue from the asset and wealth management business … Continue reading “Goldman Sachs Traders Ride the Stock Market Rally, Equity Trading Revenue Jumped 26% in Q4”

Goldman Sachs Profits Continue Slide, Drop 33% to $2.06 billion on Consumer, Real Estate Woes

Goldman Sachs, America’s largest investment bank reported third quarter earnings Tuesday, though better than expected were a continuation of falling profits. This has been a horror stretch for the ‘Giant Squid’ with $GS cutting jobs and bonuses at a rate not seen since the financial crisis. Goldman’s quarterly profit dropped less than expected as a recovery in dealmaking offset the $864 million write-down related to its GreenSky fintech business and real estate investments. GS’s net profit slumped 33% to $2.06 … Continue reading “Goldman Sachs Profits Continue Slide, Drop 33% to $2.06 billion on Consumer, Real Estate Woes”

Short Covering Caught Hedge Funds in July Near Record levels – Goldman Sachs

The sometimes-vertical moves in stocks during July, in particular in the Magnificent Seven Stocks caught many hedge funds by surprise in July according to Goldman Sachs Prime Brokerage. Goldman Sachs indicates “signs of capitulation are starting to emerge” in their recent prime brokerage report. To be fair many of the analysts have been arguing capitulation was nigh for at least six months it seems. While losses were mainly on the short side Goldman saw “a meaningful deterioration in long side” … Continue reading “Short Covering Caught Hedge Funds in July Near Record levels – Goldman Sachs”

The Giant Squids Horror Stretch Continues, Goldman Sachs Profit Drops 58%

Goldman Sachs, America’s largest investment bank reported worse than expected second quarter earnings Wednesday. This has been a horror stretch for the ‘Giant Squid’ with $GS cutting jobs and bonuses at a rate not seen since the financial crisis. Goldman was the only one among its big-bank peers to miss per-share earnings expectations. Citigroup and Morgan Stanley did report profit declines, however Goldman’s decline dwarfed theirs. Investment banking activity continued to drop off as higher interest rates and a weakening … Continue reading “The Giant Squids Horror Stretch Continues, Goldman Sachs Profit Drops 58%”

Big Banks Kick Off Second Quarter Earnings Season with Citigroup, JPMorgan, State Street and Wells Fargo

America’s big money center banks kick of second quarter earnings next week. Core commercial and consumer banking franchises are expected to show improved profitability. However, there is continued weakness in investment banking and concerns are rising over the banking sector’s exposure to commercial real estate, asset quality is being scrutinized in earnings. Signs of asset quality deterioration are a risk. JPMorgan Chase (JPM), Citigroup (C), BlackRock (BLK), State Street (SST) and Wells Fargo (WFC) reporting Q2 results on Friday July … Continue reading “Big Banks Kick Off Second Quarter Earnings Season with Citigroup, JPMorgan, State Street and Wells Fargo”

The Beat Goes On; America’s 23 Biggest Banks Pass Federal Reserve Stress Tests

The Federal Reserve on Wednesday announced the 23 largest US lenders had passed the Central Banks Stress Tests. The banks showed they can withstand a severe global recession and turmoil in real estate markets. The Fed released the hypothetical scenarios for its annual bank stress tests back in March before the New York and California regional bank turmoil. The 23 banks were tested against a severe global recession with heightened stress in both commercial and residential real estate markets, as … Continue reading “The Beat Goes On; America’s 23 Biggest Banks Pass Federal Reserve Stress Tests”

Goldman Sachs Revenues Miss, Discloses Losses in Marcus and Real Estate

Goldman Sachs, America’s largest investment bank reported worse than expected first quarter earnings Tuesday, hit by the ongoing dealmaking slump and a major loss recognized in the money-losing consumer bank Marcus. GS disclosed a $470 million loss “related to a partial sale of the Marcus loans portfolio”. Goldman also took a $355 million loss related to its real estate investments. Goldman reported net earnings of $3.23 billion, or $8.79 per share in the first quarter, down 18% compared to the … Continue reading “Goldman Sachs Revenues Miss, Discloses Losses in Marcus and Real Estate”

Big Banks Kick Off First Quarter Earnings Season with Citigroup, JPMorgan, PNC and Wells Fargo

America’s big money center banks kick of first quarter earnings next week. There will be extra attention on them with the recent banking turmoil. Guidance will be keenly watched for from the money center banks. Concerns are rising over the banking sector’s exposure to commercial real estate. JPMorgan Chase (JPM), Citigroup (C), PNC Financial Services Group, Inc. (PNC) and Wells Fargo (WFC) reporting Q1 results on Friday. We got a preview from JPMorgan CEO Dimon saying that banking system is … Continue reading “Big Banks Kick Off First Quarter Earnings Season with Citigroup, JPMorgan, PNC and Wells Fargo”

Federal Reserve Hypotheticals For 2023 Bank Stress Tests have Unemployment at 10%

The Federal Reserve on Thursday released the hypothetical scenarios for its annual bank stress tests. This year, 23 banks will be tested against a severe global recession with heightened stress in both commercial and residential real estate markets, as well as in corporate debt markets. Last year the Fed found all 34 large banks tested remained well above their risk-based minimum capital requirements, and the Fed announced no restrictions relating to dividends and buybacks. These test results will be keenly … Continue reading “Federal Reserve Hypotheticals For 2023 Bank Stress Tests have Unemployment at 10%”

Goldman Sachs Hemorrhaging Profits for Fifth Straight Quarter

Goldman Sachs, America’s largest investment bank reported worse than expected fourth quarter earnings Tuesday, profits are down two-thirds from its previous quarter. $GS shares were trading down to $348.67 ▼ -25.33 (-6.77%) in the morning. This has been a horror stretch for the ‘Giant Squid’ with GS cutting jobs and bonuses at a rate not seen since the financial crisis. Goldman’s results highlight a mixed quarter for US money center banks. Profit fell at most major banks and Goldman suffered the … Continue reading “Goldman Sachs Hemorrhaging Profits for Fifth Straight Quarter”