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Goldman FICC Revenue Tumbles 28%, Average Employee Compensation Drops To 3 Year Low
After JPM and Bank of America, the institutional trading persists, and nowhere was it clearer than in the results of the biggest FDIC-insured hedge fund, Goldman Sachs, which moments ago reported Q1 EPS of $1.98, far below the expected $3.96, however the reason for the miss is because Goldman took a whopping $1.45 billion, or $2.77 per share, litigation provisions in the quarter up nearly five times compared to a year ago, suggesting Goldman is bracing for some serious government lawsuits. This is what Goldman said on this topic:
The increase in non-compensation expenses compared with the second quarter of 2014 was due to significantly higher net provisions for mortgage-related litigation and regulatory matters, which are included in other expenses. Net provisions for litigation and regulatory proceedings for the second quarter of 2015 were $1.45 billion compared with $284 million for the second quarter of 2014.
Adding the litigation charge to the bottom line nets $4.75 which was a beat to expectations, as was the company's top line, as Q2 revenue printed at $9.1 billion, above the $8.7 billion expected.
Overal good results, and yet it was the internals that suggested not all is well, with the all important revenue driver for Goldman, FICC, tumbling 28% from $2.2 billion a year ago to $1.6 billion, below the $2.1 billion consensus estimate. However, just like with JPM and BofA the decline in fixed income results was offset by an increase in Institutional Equity flow, which rose to $2 billion, above the $1.7 billion expected, surely as a result of the surge in Chinese trading in the quarter.
And the bigest wildcard, as usual, was Goldman's prop group (investing and lending) which in the quarter generated a whopping $1.8 billion, the highest since this time last year.
It wasn't just the massive litigation provision that hinted it may not be all smooth sailing for the hedge fund that has spawned more central bankers in recent years than any other: the company (which unlike all other banks on Wall Street has been adding headcount and now has 34,900 employees) took only $3.8 billion in compensation benefit accruals in the quarter, which means that its LTM comp divided by the total number of employees, or average compensation per banker, dropped once again, this time to "only" $373,181 - the lowest acrrual in three years.
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Take that, you less rich financial perverts!
average compensation per banker, dropped once again, this time to $373,181
Hellish....maybe we should hold a bake sale for these guys.
Oh that's right....bake sales are illegal.
Plan B, a couple drug runs across the Mexican border should do the trick....everyone else does it.
Another reason to buy stawks I guess?
average compensation only $373, 000! Poor bankers. I feel really bad for them. Maybe thet should apply for EBT cards.
EBT cards are just one of their many perks, it would not be fair to victimize these poor hard working Banksters.
After all they are doing Gods work, and it's for the chidrens!
TRP, on top of the transaction skim?
Let me keep this simple: FUCK Goldman and all of their stinking employees AND customers!
Someone should do a version of "Hit 'Em Up" directed at the banksters.
Since they are a "bank" do they direct deposit their employees pay checks into the Goldman Sachs branch banks???
Our Crowd
Unless the fines ( 'cause there's never any jail time ) outweigh the gains from the malpractice Goldman and the rest of the criminal enterprises will just keep rollin' along unabashed.
We promise not to throw you in jail....now stop bitching about your compensation.
These are tough times....nut up!
I feel for them. It is getting rough everywhere. I hope they stay strong in mind and body.
But I guess since they are doing God's work they don't care much about their measly salary.
pods
This is probably nothing... well it is taxpayer money if course...
Total--Tennessee Valley Authority Outlays 2014 = $46.6 Billion
Total--Tennessee Valley Authority Outlays 2013 = $65.8 Billion (what is happening here)
Total--Tennessee Valley Authority Outlays 2011 = $38 Billion
Total--Tennessee Valley Authority Outlays 2009 = $32.7 Billion
Total--Tennessee Valley Authority Outlays 2007 = $19.4 Billion
Total--Tennessee Valley Authority Outlays 2005 = $20.9 Billion
Total--Tennessee Valley Authority Outlays 2003 = $13.9 Billion
Total--Tennessee Valley Authority Outlays 2001 = $11.3 Billion
Total--Tennessee Valley Authority Outlays 2000 = $8.3 Billion
Total--Tennessee Valley Authority Outlays 1998 = 9 Billion
Total past 10 Years Federal Funding Tennessee Valley Authority =$265.9 Billion
30 September 2014, Final Monthly Treasury Statement, Outlays and Revenues, Table 5.
i hope they get sued out of existence
GS must have screwed up big time since all the other banks are reporting profits, and big profits at that.
The result will be boosting their stawk price by either: 1) firing 5,000 employees or 2) stawk buy backs.
Anyone else notice thst their stock price had been ramped up BIG TIME over the last 5 months or so? $170 to $220. on nothing.
BET THAT WAS NO ACCIDENT.
I read where there was some kind of lockup expiring (options?no idea), but now I think it was to cushion any blow on these earnings.
the squid rules.
EAT SHIT, GOLDMAN!!!!! BASTARDS!!!!!!!!!!!!!!!!!!!!!!!