Sunday, May 6, 2012

Goldman Sachs Earnings Spike, Revenues Surge

Goldman Sachs reported Q1 2012 financial results on Tuesday, April 17.

Goldman Sachs, the World's Most Hated Bankers, did in fact redeem themselves at least financially. CEO Lloyd Blankfein, regardless of his ongoing inept stewardship of this corrupt investment banking-house, had a good day.

As expected, earnings per share spiked. However, the surge was even higher than forecast to an incredible 8-quarter peak. This more than doubled EPS QoQ and YoY. This is on top of the prior quarter bounce. Redemption did draweth nigh.

Financial position is marginal and questionable without the $171.59 billion in unsecured long-term borrowings being counted as capital. The earnings reports are veiled. Goldman Sachs dispenses only the information they feel the throne should allow commoners to see. For example, a peek behind the royal veil at detailed financial position, a balance sheet, is not allowed.

The essence of this quarterly performance was revenues increased almost entirely across the board QoQ, but were actually down YoY. The notable quarterly decrease was -8% QoQ and -7% YoY in the investment management segment. Goldman Sachs explained the drop, "primarily due to lower management and other fees and lower transaction revenues". I'm very surprised the drop was so small. The decline is of course attributable to the corporate culture of not managing client wealth but confiscating through chicanery.

This goes back to March 2012 and former Goldman Sachs executive Greg Smith writing an op-ed in the New York Times. Smith called the working environment "toxic and destructive". He wasn't done, he expounded, "It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as 'muppets' sometimes over internal e-mail." This is creepy...

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