Analysts grilled Goldman Sachs Tuesday for its role in structuring a security tied to subprime mortgages even as the firm reported a stronger-than-expected profit of $3.5 billion in the latest quarter.
Goldman Sachs facing a fraud lawsuit from U.S. regulators, reported first-quarter earnings that surpassed analysts’ estimates on record fixed- income trading revenue.
Net income almost doubled to $3.46 billion, or $5.59 a share, from $1.81 billion, or $3.39, a year earlier, the New York-based bank said today in a statement. The average estimate of 23 analysts surveyed by Bloomberg was for $4.14 per share. Predictions ranged from $3.33 to $5.97.
Just days after being charged with defrauding investors by the Securities and Exchange Commission, Wall Street’s top investment bank defended its actions, maintaining it never misled investors and that it did not make money on the deal.
In its civil fraud case, the SEC said that Goldman allegedly allowed hedge fund Paulson & Co., who made billions of dollars betting against the U.S. mortgage market, to help select securities in a so-called collateralized debt obligation, or CDO.
Goldman also did not indicate if it would be willing to settle with the SEC at some point. In the wake of Friday’s announcement, the firm called the charges “unfounded”, adding that they planned to “vigorously contest” them.
(Source: Bloomberg.com / CNN Money)
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well lets see. the gave MILLIONS of dollars to the demorat party including a cool ONE MILLION to the Obamanation campaign. The govt is sooo in bed with Goldman Sachs its rediculous. The Obamanation Regime has a number of people who worked there or were otherwise associated with Goldman Sachs. This is why I am a frim believer that this whole thing is a big joke on us & is being used so Obama could ‘show us’ the evil wall street people.
I can’t wait for all the manure to hit the fan on this regime.