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Thursday, October 15, 2009
Morgan Housel :: Townhall.com Columnist
Inside Goldman Sachs' Earnings
by Morgan Housel
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Goldman Sachs (NYSE: GS) made an obscene amount of money last quarter, which surprised precisely no one.

Net income came in at $3.19 billion, or $5.25 per share. That was up from $845 million, or $1.81 per share in the same period last year.

In a conference call you'd think was scripted word-for-word by a PR firm, Goldman spent most of the morning playing down the results, reminding investors that record territory wasn't breached, and that paying its employees kingly sums was obligatory.

"Our competitors are very good, they are paying people quite well," said CFO David Viniar. In other words, "Don't hate the player, hate the game!"  

But no one's fooled here: This environment is about as good as it gets for Goldman. One year post-meltdown, Goldman's trading units are pulling money out of thin air at a rate the Bureau of Engraving and Printing would envy.

Here's how banking and trading revenue broke down in the quarter, compared to last year:

Division

Net Revenue, Q3 2009

Net Revenue, Q3 2008

Investment Banking Advisory (mergers and acquisitions)

$325 million

$619 million

Equity Underwriting

$363 million

$292 million

Debt Underwriting

$211 million

$383 million

Fixed Income, Currency, and Commodities Continued...

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About The Author

Morgan Housel is a Motley Fool contributor.

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