Charges sink Goldman profit
Goldman Sachs reported an 83 percent drop in second-quarter net income but still got a vote of confidence from investors.
Goldman Sachs Group Inc. said Tuesday that its earnings fell to $453 million as trading revenue dropped during a dismal spring for the financial markets. The bank also booked a $550 million charge for its settlement of civil fraud charges with the Securities and Exchange Commission — which was approved by a federal judge Tuesday — and took a $600 million charge because of a new tax on employee bonuses in Britain.
Investors initially sold Goldman’s stock after the company reported its earnings, but they reversed course as the trading day wore on, heartened by analysts’ views that Goldman is likely to remain the top player on Wall Street.