Goldman Sachs posts soaring $3.46 bln profit
NEW YORK (AFP) Ã¢â‚¬â€œ Investment giant Goldman Sachs on Tuesday posted surging first quarter profits of 3.46 billion dollars, doubling its profit of one year ago, even as it faces US government probe into its role in the US financial meltdown.
Net earnings were up a whopping 91 percent against the same three months a year ago, blowing Wall Street expectations out of the water.
“Our performance in the first quarter reflects more signs of growth across the economy and the strength of our client franchise,” said Goldman chief executive Lloyd Blankfein.
The earnings announcement comes as a special US Senate panel prepared next week to unveil the results of yearlong inquiries into the roles played by Goldman Sachs and credit ratings agencies such as Moody’s Investors Service in the subprime mortgage meltdown.
It also follows a civil fraud suit filed by the US Securities and Exchange Commission alleging that Goldman allowed the hedge fund Paulson and Company to heavily influence the selection of subprime loans, without telling investors that Paulson itself would be wagering the securities would default.