Goldman Sachs results beat expectations
Wall Street bank Goldman Sachs has today reported its fourth quarter results with net profits at $4.95 billion (£3.06 billion) compared with a loss of $2.12 billion in the same period a year earlier.
For the 2009 year, the bank made a net profit of $13.39 billion, up from $2.32 billion in the previous year.
The results come just a few days after Citigroup posted a loss for the fourth quarter of 2009, as a result of the repayment of Government loans.
Last week, fellow Wall Street banking giant JPMorgan Chase kicked off the reporting season by posting fourth quarter profits of $3.28 billion (£2 billion) compared with $702 million a year ago.
Meanwhile, Goldman Sachs will have to cut bonuses for staff based in London, as part of the Chancellor’s super tax, which was introduced to claw back some of the bailout funds used to rescue the banking industry.
London Mayor, Boris Johnson, HSBC chief executive, Michael Geoghegan, and Barclays chief, John Varley, have all warned of the dangers of the tax and believe that bankers could flee the capital because of it.
As a result of the payout restriction, Goldman Sachs workers in the City will earn less than their counterparts around the world.
Goldman Sachs received a $10 billion bailout from the US Government but it has now repaid the loan.