Shawshank, VA 10/18/2011 (PennyPayDay) – Goldman Sachs (NYSE:GS), weighed down by problems its private equity portfolio and the broader global economic woes, reported a loss of $428 million, compared with a $1.7 billion profit a year ago.It's only the second quarterly loss for Goldman since the investment bank went public in 1999.
The company reported a loss of 84 cents a share, worse than analysts predictions of a loss of 16 cents, according to Thomson Reuters.
The troubles, which follow similar weakness in the second quarter, underscore just how difficult the environment for investment banks. Goldman, widely considered the savviest trading firm on Wall Street, saw a significant revenue drop in key divisions like fixed income and investment banking amid the market turmoil.
The results also include a $1.05 billion hit on its private equity investment in the Industrial & Commercial Bank of China, a strategic investment made in 2006; ICBC stock fell roughly 35 percent in the quarter.
"Our results were significantly impacted by the environment and we were disappointed to record a loss in the quarter," said Lloyd C. Blankfein, Goldman's chief executive in a statement. "However, we believe the strength of both our client franchise and our balance sheet positions us well for when economies and markets improve."
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