Goldman Sachs, reports earning second-quarter net profits of $3.44 billion, or $4.93 a share. The profits come just one month after it paid back its $10 billion in federal aid. [New York Times]
Over all, Goldman’s net revenues were $13.76 billion, compared with $9.43 billion in the first quarter.
The bank lost money in the final quarter of 2008. JPMorgan Chase have been emerging as strong players since last year’s financial troubles, and analysts also expect them to record strong results, again partly on the back of robust trading revenues.
Goldman, along with other banks, also benefited from a government program that allows banks to issue debt cheaply with the backing of the Federal Deposit Insurance Corporation. In addition, it received money from the government’s bailout of the American International Group, being paid 100 cents on the dollar for its $13 billion counterparty exposure to the insurer.
It does appear to be a sign that perhaps we’re turning a corner. Let us hope so.
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