Goldman Earnings Jump 91%

Meanwhile, British launch piggyback fraud investigation
By Kevin Spak,  Newser Staff
Posted Apr 20, 2010 6:53 AM CDT
Goldman Earnings Jump 91%
People walk to work outside the Goldman Sachs headquarters, center, Monday, April 19, 2010, in New York.   (AP Photo/Mark Lennihan)

Goldman Sachs earnings cruised past analysts' estimates to a whopping 91% gain in the first quarter, which might be great news if it didn't come while the bank is mired in fraud allegations. CEO Lloyd Blankfein seemed almost defensive, noting that the performance “reflects more signs of growth across the economy and the strength of our client franchise.” Of the SEC's charges, he would only say, “In light of recent events … we appreciate the support of our clients and shareholders.”

In all, the company recorded a $3.46 billion profit, or $5.59 a share, the Wall Street Journal reports, trouncing the $4.01 per share analysts expected. And that profit came after Goldman paid employees $5.5 billion in compensation—or 43% of its total revenue. The announcement comes on the same day the UK's Financial Services Authority launched its own fraud investigation against Goldman, the BBC reports. It said it would work closely with the SEC. (More Goldman Sachs stories.)

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