Reply #40: (For the record) Goldman profit quadruples

[Ghost Dog]

Thu Oct 15, 2009 4:12pm BST NEW YORK (Reuters) - Goldman Sachs Group quarterly earnings nearly quadrupled, topping expectations, but its shares fell on disappointment that so much of the profit came from trading gains that might not be sustainable.

The firm, which was already Wall Street's largest investment bank before the financial crisis and has become even more dominant as some rivals have fallen by the wayside, stayed on pace to hand out more than $20 billion (12 billion pounds) in year-end bonuses. That would be equivalent to more than $630,000 per employee and could beat a record set for compensation in 2007.

But in a sign of weakness, Goldman's investment banking and asset management revenues were lower. The bank fell to No. 2, behind Morgan Stanley, in merger and acquisition adviser rankings for deals announced globally through the third quarter, according to Thomson Reuters. It also dropped a spot to No. 7 in global capital markets.

...

Goldman, which has been under fire from some quarters over gold-plated pay so soon after taking government bailout funds, allocated 43 percent of net revenue in the third quarter to compensation and benefits, compared with 49 percent in the first half.

...

Goldman shares fell 1.7 percent to $188.94 in morning trading, matching a decline in the Amex Securities Broker dealer index. The shares are up more than 124 percent this year.

...

Net revenue in Fixed Income, Currency and Commodities (FICC) was $5.99 billion in the third quarter, up from $1.59 billion a year earlier. The increase reflects strong performances in credit products and mortgages, which were significantly higher compared to a difficult third quarter of 2008.

Net revenue in equities was up 78 percent to $2.78 billion, helped by a strong performance in derivatives and shares.

Principal Investments posted net revenue of $1.26 billion after a $453 million loss in the year-ago quarter.

Net revenue in investment banking and financial advisory fell during the quarter, reflecting the decline in mergers and acquisitions.

Investment banking net revenue was $899 million, down 31 percent from the third quarter of 2008. Results in financial advisory were $325 million, down 47 percent.

Net revenue in Asset Management and Securities Services was down 29 percent to $1.45 billion.

/... http://uk.reuters.com/article/idUKTRE59E2BT20091015?sp=true

Um, strangely, I seem to recall that Goldman Sachs Group and/or some major part thereof was reclassified as a commercial bank, rather than, as previously, an investment bank, literally 'overnight' in order to 'qualify' for a lifesaving taxpayers' bailout. So, can anyone tell me:

i). where this bank's main street branches for 'ordinary' customers are to be found?

ii). how come other commercial banks are not supposed to speculate in stocks and other markets on their own account (or did I get that wrong, and all are free to so speculate now)?