Legal News

Goldman Sachs’ Profits Hurt by Litigation Costs
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Goldman Sachs

Summary: While legal costs have hurt their profits, Goldman Sachs’ overall profits are up from a year ago.

Goldman Sachs has seen a big cut to their profits as the bank sets aside $1.45 billion for pending mortgage-related litigation and matters. Their earnings during the second quarter were reduced by almost half.

  
What
Where


The markets are tough and they are dealing with investigations from the financial crisis. They announced that they are close to a deal with the Justice Department for their sale of mortgage-backed securities prior to the financial crisis. Other similar cases involving other banks have been settled by now.

Usually a good source of profit for Goldman is there trading desks but that is seeing a decline as well. Their fixed-income trading revenue was down 49 percent from their first quarter numbers. They believe the issue of Greece pulling out of the euro is a major factor for the smaller numbers. With that matter close to being resolved, the bank hopes to see numbers start increasing as mergers and acquisitions pick back up. Currently, revenue from M&A is down 15 percent from the first quarter.

The bank still earned a profit of $1 billion this year. With their additional $1.45 million set aside, they actually earned more than last year. Their overall revenue did better than what analysts predicted at $8.8 billion. The bank reported revenue of $9.1 billion.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Source: http://www.nytimes.com/2015/07/17/business/dealbook/litigation-costs-drag-down-goldman-sachss-earnings.html?_r=0

Photo: vrsteel.com





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Attorney with 1-2 years of business immigration experience

USA-IL-Chicago

Chicago office of our client seeks attorney with 1-2 years of business immigration experience. The c...

Apply Now

RELEVANT JOBS

LITIGATION ATTORNEY

USA-CA-Emeryville

Boutique East Bay litigation defense firm is seeking a junior to mid-level attorney. Candidates for ...

Apply now

Managing Director, Litigation Finance Investments

USA-FL-Tampa

Title                ...

Apply now

Contract Associate

USA-CA-Sausalito

Seeking lawyer with at least 2 yrs experience in complex real estate transactional matters, with wil...

Apply now

Products Liability & Mass Tort Litigation Associate

USA-GA-Atlanta

The candidate must have 1- 5 years of civil litigation experience, preferably with some background i...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top