Charges sink Gold­man profit

Austin American-Statesman - - BUSINESS & PERSONAL FINANCE -

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.

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