Goldman Sachs reported 65% profit decrease in Q4 2015

Goldman Sachs

Goldman SachsThe investment bank Goldman Sachs reported 65% profit decrease in Q4 2015, largely due to the legal agreement with regulators in USA, which reduced the company’s profit to 1.54 billion USD. The net profit dropped to 765 million USD, representing a 1.27 USD per share, compared to 2.17 billion USD an year earlier. Last week Goldman Sachs announced settlement of legal agreement with regulators in accuse that mislead investors in sales of mortgage-backed securities, which provides bank to pay fines and taxes at total value of 5.1 billion USD, which seriously affected the financial statement and report of the company.

The shares of Goldman Sachs dropped by 13% since the beginning of this year, as the financial companies in the sector S&P 500 recorded an overall decrease of 10%. The company plans to cut 5% from its traders in Q1 2016 inline with the cost reduction program and optimization of the business model of investment bank.

The US regulators already fined three of the largest banks with totally 37 billion USD for controversial trade with securities backed by mortgages, in the beginning of the financial crisis. Most of the bank already applied their cost reduction programs and finished 2015 with positive financial report and profit growth, however, Goldman Sachs’ case increased in time and company was not able to complete its settlement earlier.

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Viliyana Filipova
My name is Viliyana Filipova and I’m working as content writer and analyst of Business News Feeds Journal. I'm writing about finance statements, business analyze and employment for Central and Eastern Europe, Russia and Middle East.

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