Goldman profit soars on bond trading and cost cuts
Strong third-quarter numbers reflect Goldman’s commitment to fixed-income trading, at least four rounds of job cuts, and beneficial trading enviroment
New York — Goldman Sachs Group’s commitment to fixed-income trading through a seven-year slump paid off in the third quarter, as revenue from the business surged 49% to propel the firm past analysts’ earnings estimates. The rebound in bond trading added to the second quarter’s 33% advance, giving CEO Lloyd Blankfein more time to prove the merits of his strategy after some competitors pulled back. The gains helped fuel a 47% increase in earnings for the three months ended September 30, New York-based Goldman Sachs said on Tuesday in a statement. Blankfein, 62, has been cutting jobs, giving more responsibility to junior employees and lowering compensation to prepare for when activity rebounds from the downturn, which saw industrywide revenue from fixed income fall by half last year compared with 2009. First-quarter revenue was the lowest for the start of a year in Blankfein’s decade-long tenure as CEO. "You started in such a deep hole and that impaired sentiment dramatically and creat...
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