Correction: Earns-Goldman Sachs

AP News
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Posted: Apr 20, 2011 5:06 PM
Correction: Earns-Goldman Sachs

In a story April 19 about an earnings report from Goldman Sachs Group Inc., The Associated Press reported erroneously that Goldman's second-quarter earnings could be affected by its redemption of an investment in the bank made by Warren Buffett's company, Berkshire Hathaway Inc. The AP also reported erroneously that the investment bank paid $1.64 billion in dividends to Berkshire.

Goldman Sachs redeemed Berkshire's investment on April 18. Although the payment was made in April, it will not lead to a reduction in the bank's second-quarter earnings because Goldman already accounted for the transaction in the first quarter.

Also, the $1.64 billion, which Goldman described as a "preferred dividend" in its earnings release, was not an amount of money paid to any party. It was an accounting move which reduced the income available to shareholders as a result of Goldman's redemption of the preferred shares held by Berkshire.