Goldman Sachs profits top $3bn
April 20, 2010
US bank Goldman Sachs has seen its profit for the first quarter of 2010 nearly double.
The bank reported net earnings of $3.46bn (£2.25bn) for the three months to March, up from $1.8bn a year ago.
Goldman also revealed that it paid its employees about $5.5bn in compensation, equivalent to 43% of its revenue.
Earlier, the UK’s Financial Services Authority (FSA) announced a formal enforcement investigation into the bank regarding recent fraud allegations.
The results were ahead of Wall Street expectations, with revenue coming in at $12.8bn, beating forecasts of $11bn.
Shares in the bank rose more than 1% in pre-market trading.
UK investigation
The FSA’s earlier announcement followed claims made by the Securities and Exchange Commission (SEC) in the US that Goldman defrauded investors during the sub-prime housing crisis.
Goldman has strongly rejected the SEC’s claims as wrong “in fact and law” and said it would co-operate with the FSA.
The UK watchdog said it would liaise closely with the SEC in its review.
Source: bbc.co.uk/
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