Goldman solidly beat earnings primarily by speculative trading. Recall Tyler Durden’s "The Incredibly Shrinking Market Liquidity" which presents evidence that Goldman’s been manipulating the market. But no worries, I think we know by now there will be no investigation and Goldman’s profits will help it get out from under those annoying TARP restrictions. – Ilene
Goldman Sachs Releases Earnings After Hours
Courtesy of Jesse’s Café Américain
Goldman Sachs released their earnings early tonight after hours, instead of tomorrow morning.
Goldman solidly beat both earnings and revenue expectations, and has indicated that they intend to pay back their TARP borrowings as soon as possible.
Matt Miller of Bloomberg TV has used the term ‘blowing away’ their numbers at least thirty times since they announced their numbers after the close.
The major source of profit for Goldman Sachs was from speculative trading.
There will be no recovery in the real economy until the financial system is reformed and banks are restrained into productive functions within our society.
Goldman posts $1.7 billion profit, plans $5 billion offer
NEW YORK (Reuters) – Goldman Sachs Group Inc posted first-quarter earnings of $1.66 billion, a higher-than-expected profit helped by strong trading revenue, and said it planned to raise $5 billion of common shares.
The New York-based bank reported net income applicable to common shareholders for the quarter ended March 27 of $3.39 a share. For the quarter ended February 29, 2008, the company posted net income for common shareholders of $1.47 billion, or $3.23 a share.
Analysts had on average expected earnings of $1.49 a share, according to Reuters Estimates.
Goldman said it planned to use proceeds of its share offering plus additional funds to repay the $10 billion of capital it received from the U.S. government under the Troubled Assets Relief Program.
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