Goldman is baaaaaack…. if only in soaring compensation.
While the firm reported trading results that were largely unspectacular in Q2 (very much as the Jefferies early glimpse foretold) with solid drops on a Q/Q basis in the two key revenue categories, FICC down 23% from Q1 and at $2.46 billion it missed expectations of a $2.53 billion print and Investing and Lending, i.e., Prop Trading, which had its worst quarter in one year and was down 32% Q/Q, not to mention a 21% plunge in revenues from equities client execution, it was the usual game of beating lowered expectations that allowed the firm to glide through its Q2 results. EPS was expected at $2.89 and came at $3.70; Revenues was expected at $7.97 billion and came at $8.61 billion, down 15% from Q1 but 30% better than a year ago; I-Banking down 1% to $1.55 billion but beating expectations of $1.35bn, Investing and Lending plunging but at $1.42 bn beating expectations of an even greater drubbing at $870MM. Continue reading