Goldman Sachs Rakes in the Cash, Despite SEC Fraud Suit
April 20, 2010
(ChattahBox)—-The beleaguered financial firm Goldman Sachs, just sued by the SEC for civil fraud, is not letting a few questionable sub-prime mortgage instruments get in the way of its sole reason for existence; to make money and lots of it. Goldman posted its first quarter profits on Tuesday, reporting $3.46 billion in earnings. That amount is nearly double the earnings posted last year during the same period.
Goldman not only managed to nearly double its earnings, but the firm also is among the top earners on Wall Street.
According to The NY Times, Goldman has bounced right back from the financial calamity two-years ago, caused by Goldman and other firms’ greed, risky investments, huge bonuses and deregulation:
“Earnings for the Wall Street giant rose 91 percent in the first quarter of 2010, to $3.46 billion or $5.59 a share, up from $1.81 billion or $3.39 a share in the same period last year. Revenues increased 36 percent to $12.78 billion, up from $9.42 billion in the quarter a year ago.”
And most have the profits have come from Goldman’s trading unit: flash trades, exotic instruments, derivatives, it’s all one big Las Vegas casino. And at the end of the day, Wall Street gurus have created nothing, but smoke and mirrors and gaudy bright lights, hoping no one notices.
Other top firms also posted healthy earnings. “JPMorgan reported a profit of $3.3 billion, Bank of America earned $3.2 billion and Citigroup $4.4 billion. Morgan Stanley reports results on Wednesday.”