Goldman Sachs Posts $428M Loss in 3Q

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Due to political and financial turmoil in the United States, investment bank Goldman Sachs Group Inc. said its third quarter earnings fell short by $428 million– the second quarterly loss since it went public 12 years ago.

Investment bank Goldman Sachs Group Inc. on Tuesday reported a $428 million loss in the third quarter of this year – the second quarterly loss since it went public 12 years ago.

In a report, Goldman Sachs said its third quarter earnings fell into the red level, equivalent to 84 cents per share, after revenue from underwriting stocks and bonds plummeted by 61 percent.

Last year, the company earned more than $1.7 billion or $2.98 per share.

Meanwhile, the investment banker said its revenue also hit another red, dropping 60 percent to $3.6 billion.

The last time Goldman posted a quarterly loss was in 2008, at the peek of the global financial crisis.

But investors remained unfazed by the negative results, which have been widely accepted as financial markets remained volatile at least until summer 2011. As a sign of confidence from its investors, Goldman’s shares rose by 0.9 percent to $97.72 in the early trading on Tues.

Many analysts also predicted the loss, noting that the turbulent markets during the period and political wrangling in Washington has led financial companies to defer new stock and bond offerings.

At present, banking has become small and less profitable due to constant government clamping that aims to drive away outsized profits and risky balance sheets.

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