Goldman sinks into red

GOLDMAN Sachs has slumped to its first quarterly loss in six years thanks to sluggish trading and a change in tax laws.

The lender lost £1.4bn in the last three months of 2017 as its bond dealing arm struggled to cope with tougher rules and a shift to automated systems.

US tax cuts, from 35pc to 21pc further added to Goldman’s woes by forcing it to write off £3.2bn.

Some banks were able to use losses suffered during the financial crisis as a means of cutting their tax bills but the tax cut has torpedoed that strategy.

However, Goldman boss Lloyd Blankfein said the reforms will be positive in the long run. Shares dropped 2.5pc in New York.