Goldman Sachs Profit falls 70 percent: stock market is going to crash again

September 17, 2008

Goldman Sachs has reported a 70% drop in third quarter profits to $845m (£475m), down from $2.85bn in the same three-month period a year ago.

In its trading and principal investments division, the bank’s revenue plunged by 67% to $2.7bn. Goldman revealed that it made a $500m loss on residential mortgage-related securities and a $325m loss on commercial mortgages. Its principal investments operation made a $453m loss, largely due to corporate and property investments.

Goldman’s 70 per cent fall in net income was also better than analysts had been expecting. And of course, the results were far better than the recent ones from Merrill Lynch (bought at the weekend) and Lehman Brothers (collapsed at the weekend).

This news will affect Indian stock market adversely, as indian stock market generally follows the international stock market trends.

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