Goldman Sachs reported a lower-than-expected quarterly profit as gains in investment banking were offset by weak trading revenue. Roselle Chen reports.
Goldman Sachs missed Wall Street expectations as weak trading revenue outweighed gains in other areas. Bank's shares tanked in early trading. The fifth-largest U.S. bank by assets blamed weakness in commodities, currencies, and credit revenue, as well as lower commissions and fees from equities trading. In a statement, Goldman Chief Executive Lloyd Blankfein described the business environment as "mixed" with client activity "challenged." Olivia Oran covers the story for Reuters: (SOUNDBITE) OLIVIA ORAN, REPORTER, REUTERS, (ENGLISH) SAYING: "On the analyst call, management at Goldman really blamed low volatility. They said that that was the reason that clients weren't trading and that was also still a lot of macro uncertainty out there around U.S. legislative process and some of the European elections, so that's kind of what pinning a lot of the poor results on." Goldman's results stood in sharp contrast to other big banks' earnings. On Tuesday, Bank of America beat on surge in trading revenue, as did JPMorgan and Citi last week.