You think Americans out of work and losing their homes are having problems? Just read about how tough times are for our “friend” on Wall Street. Susanne Craig at the New York Times writes ‘Goldman Wrestles With a Weak Quarter‘.
Goldman posted net revenue, or revenue minus interest expense, in its investment bank of $1.1 billion, up 24 percent from the period a year earlier. Trading, however, was another story. Net revenue in its powerful fixed-income, currency and commodities unit dropped 37 percent, to $3.8 billion. And net revenue from equities trading and commissions fell 33 percent, to $1.9 billion.
The slowdown in trading comes at a difficult juncture for Goldman. It has been the target of criticism from Washington and Main Street over its quick return to huge profits and big bonuses months after the financial crisis, when financial firms, including Goldman, were forced to accept government help.
No firm returned to profitability faster than Goldman, which set aside $3.8 billion in compensation in the third quarter quarter. It will not decide what it will pay out until the fourth quarter, but so far this year it has put aside $13.1 billion in pay for its 35,000 employees.
The banksters have sucked dry much of the American economy. When a parasite totally consumes its host, it needs to find a new host or die. Obviously, there is still is American economic blood left to suck, as demonstrated by Goldman’s looting of $1.9 billion in the 3rd quarter of 2010. But billions of dollars in profits and a concern that $13,100,000,000 won’t be enough to keep 35,000 employees in caviar come New Year’s 2011 do not constitute a “difficult juncture”.