clearn.png
Monday August 19th, 2019 2:16AM

Goldman Sachs posts $1.9 billion 4Q loss due to new tax law

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Goldman Sachs posted a $1.93 billion in the fourth quarter, the investment bank said Wednesday, as the bank had to record more than $4 billion in charges related to the new tax law. It was the bank's first quarterly loss in more than six years.

Goldman had a net loss of $5.51 a share, compared with a profit of $2.35 billion, or $5.08 a share, in the same period a year earlier. Excluding the one-time charges, however, the bank earned $5.68 a share, beating analysts' estimates.

Like other banks, Goldman had to write down billions in assets impacted by the new tax law this quarter, resulting in the quarterly loss. It had $3.32 billion in charges related to foreign earnings now taxable under the law and $1.1 billion in charges for deferred tax assets it stockpiled after the financial crisis.

Firm-wide, net revenues at Goldman were $7.83 billion versus $8.17 billion a year earlier.

Outside of the impact of the tax bill, Goldman's results were hurt by a relatively weak performance on its trading desks, typically one of Goldman's strongest businesses.

The segment inside Goldman that contains its trading operations had net revenues of $2.37 billion in the fourth quarter, down 34 percent from a year earlier. Fixed income, currencies and commodities trading net revenues were down by 50 percent from a year earlier.

The firm's advisory businesses, however, made up for the weak performance in trading. Investment banking net revenues totaled $2.14 billion, up 44 percent from a year earlier.

The bank set aside less money per employee for compensation than it had in the past, likely due to the weak performance on its trading desks. Goldman Sachs' pay structure relies heavily on giving annual bonuses to employees based on performance. So while compensation expenses in the full year rose to $11.85 billion, up 2 percent from a year earlier, Goldman said it had six percent more staff than it did a year ago.

  • Associated Categories: Associated Press (AP), AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Corporate News
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Apple supplier denies charges of unsafe, unclean conditions
Apple supplier in eastern China denies labor group allegations that workers toil for ten-hour shifts in loud, unsafe, polluted conditions
8:15AM ( 8 minutes ago )
The Latest: France agrees not to build airport amid protests
France's prime minister says that the government has decided against building an airport in western France that has mobilized nearly a decade of sometimes violent protests and he told protesters occupying the site that they must leave
8:14AM ( 9 minutes ago )
House panel subpoenas Bannon in Russia probe showdown
A House committee has issued a subpoena to Steve Bannon after the former White House chief strategist refused to answer a broad array of queries from lawmakers about his time working for President Donald Trump
8:05AM ( 19 minutes ago )
Associated Press (AP)
Bank of America 4Q profits fall by 48 percent due to tax law
Bank of America's 4Q profits fell by nearly half from a year ago, as the bank had to book $2.9 billion in charges related to the new tax law
7:19AM ( 1 hour ago )
Turkey to extend state of emergency amid freedom concerns
Turkey is set to extend a state of emergency for the sixth time since it was imposed following failed 2016 coup attempt
7:15AM ( 1 hour ago )
GOP still struggling with Trump's remarks on Africa
Republicans are still struggling to get their stories straight nearly a week after a meeting where President Donald Trump is said to have made vulgar remarks that have been criticized as racist
6:44AM ( 1 hour ago )
AP Online Headlines - Washington
Ex-Congressman Dennis Kucinich to launch bid for governor
Former U.S. Rep. Dennis Kucinich is preparing to make the Democratic primary for Ohio governor a five-way race
12:06AM ( 8 hours ago )
The Latest: Homeland secretary unclear on Trump vulgarity
President Donald Trump's Homeland Security secretary offers an inconclusive version of a meeting in which Trump is said to have used vulgar remarks
9:15PM ( 11 hours ago )
Emeril TV producer fighting subpoena from Florida House
A television producer for one of Emeril Lagasse's cooking shows is fighting a subpoena to turn over financial records to the Florida House of Representatives
8:40PM ( 11 hours ago )
AP Online Congress News
European car sales at highest level in 10 years
Car sales in Europe rose for the fourth straight year in 2017, topping 15 million units for the first time in a decade
7:27AM ( 56 minutes ago )
EU maintains offer to keep Britain in despite vote to leave
European Commission chief Jean-Claude Juncker has maintained the offer for Britain to remain in the EU even after both sides have entered the second phase of Brexit negotiations
7:01AM ( 1 hour ago )
Conflict among world powers a growing concern, experts say
The World Economic Forum says a new survey found more than nine in 10 experts are expressing concerns about worsening economic or political confrontation between world powers in 2018
6:38AM ( 1 hour ago )
AP Business
Autonomous cars loom, but the Detroit auto show goes on
Autonomous cars loom, but the North American International Auto Show in Detroit goes on, with the introduction of new small cars, SUVs and the all-mighty pickup truck, which dominated the show
12:02AM ( 8 hours ago )
Panama Hotel votes to drop Trump _ but his company won't go
The owners of a Trump-branded hotel in Panama are suing President Donald Trump's family-owned company in federal court
8:16PM ( 12 hours ago )
CSX 4Q profit up 25 percent and railroad gets tax-cut boost
CSX Corp. says its fourth-quarter profit grew 25 percent as it continued to cut expenses, and the railroad recorded a $3.6 billion benefit from the corporate tax cut Congress approved last year
6:24PM ( 13 hours ago )
AP Business - Corporate News
Apple supplier denies charges of unsafe, unclean conditions
Apple supplier in eastern China denies labor group allegations that workers toil for ten-hour shifts in loud, unsafe, polluted conditions
8:15AM ( 8 minutes ago )
The Latest: France agrees not to build airport amid protests
France's prime minister says that the government has decided against building an airport in western France that has mobilized nearly a decade of sometimes violent protests and he told protesters occupying the site that they must leave
8:14AM ( 9 minutes ago )
House panel subpoenas Bannon in Russia probe showdown
A House committee has issued a subpoena to Steve Bannon after the former White House chief strategist refused to answer a broad array of queries from lawmakers about his time working for President Donald Trump
8:05AM ( 19 minutes ago )
Jewish child orphaned in Mumbai attacks makes 1st visit back
A young boy whose parents were killed at a Jewish center in Mumbai during the city's 2008 terror attack has returned for the first time to visit the city
8:01AM ( 22 minutes ago )
Germany: War reparations to Poland resolved but debate OK
Germany's foreign minister has suggested an experts' group could be installed to look into calls from some of Poland's nationalist leaders that the country should be paid World War II reparations from Berlin
7:51AM ( 32 minutes ago )