From the WSJ: Goldman Sachs must hope there isn't too much truth to the
saying about three of anything constituting a trend. Its first-quarter results Tuesday showed net
income rose 7% from a year earlier to $2.26 billion. The firm also posted a
return on equity of 12.4%, which while historically low was well above the
midsingle-digit level seen last year.
But revenue from fixed-income, currency and commodities
trading, the main driver of Goldman's business, registered its third
consecutive, first-quarter year-on-year decline. At $3.2 billion, it was down
7% from a year before and was fully 25% lower than in the first quarter of
2011. The worrying implication is that,
over such a long period, this trend confirms a structural shift in trading to a
more subdued level….
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