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

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney

USA-WY-Laramie

Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now

RELEVANT JOBS

Construction Attorney

USA-FL-Deerfield Beach

Highly regarded, AV-rated law firm seeks Construction Litigation Associate with a minimum of 5 years...

Apply now

Family Law Firm seeks Associate Attorney

USA-WA-Vancouver

Are you ready to excel at the highest levels of family law? Do you prefer a dynamic, energetic pract...

Apply now

Legal Secretary

USA-NY-Buffalo

Legal Secretary for small but busy law firm in downtown Buffalo, primarily handling real estate matt...

Apply now

Commercial Real Estate Attorney

USA-AL-Huntsville

Benefits Offered 401K, Dental, Medical, Vision Employment Type Full-Time Leo Law Firm, L...

Apply now

SEARCH IN ARCHIVE

To Top