The fourth quarter earning of reputed bank and investment banker Goldman Sache dropped by 52% as reported by the banking authorities at the end of this quarter. A huge drop in the earning was reported as there was a massive drop in revenue from investment banking and trading.
The income of Goldman Sache fell to $2.39 billion from $4.95 billion in the three month period ending with fourth quarter. Lloyd Blankfein, Chief Executive officer of Goldman Sache has really worked hard to maintain the profitability of the previous years as revenue from trading dropped from a record in the year 2009 and the bank was forced to settle a civil fraud.
In the last week, Goldman Sache announced a new set of business practices and the financial reports will be changed accordingly to separate the client trading revenue from the gains and the losses which has been generated by bets with their own money.
The slow results announced by the reputed banker may have its impact on the stock market. However, good news of record profitability from Apple may have countered this negative news in the stock market.