Goldman Sachs Reports 82% Decline in Profits
July 20, 2010
(ChattahBox) – What goes around, comes around. Goldman Sachs, which was recently ordered to pay a frankly paltry fine of $550 million for misleading shareholders during the build to the financial crisis, has reported a drop of 82% in their profits.
These readings are their lowest since 2008, when their fourth quarter showed a record decline that threw the company into a tailspin of panic.
Now, history seems to be repeating itself; BusinessWeek reports that their profits dropped $613 million ($0.78 per share) from $3.44 billion ($4.93 per share) this time last year. This is far beyond the projections of analysts, who assumed the settlement would only create a minimal hit for the financial powerhouse.
“The market environment became more difficult during the second quarter and, as a result, client activity across our businesses declined,” Goldman Sachs chairman, Lloyd Blankfein, said.
I suppose it has nothing to do with the admitted criminal activity, and the company’s habit of withholding data on their dividends, then.
Think of it as business karma, Blankfein.