Goldman Sachs 2010 First Quarter Report: Profit Reaching $3.5 Billion
First Quarter of this year, covering up months of January to March, Goldman Sachs company reported an astonishing $3.5 billion profit. It also added that it paid its employees about $5.5 billion in compensation, equivalent to 43% of its revenue.
It was just last week when the firm has been charged by SEC (Security Exchange Commission) with defrauding investors in a sale of a so-called collateralized debt obligation, or CDO. Investors told SEC that their loss reached ultimately reached $1 billion.
SEC said that Goldman failed to disclose “vital information” that one of its clients, Paulson & Co, had helped to choose which securities were packaged into the mortgage portfolio. These securities were sold to investors in 2007. Goldman has strongly rejected the SEC’s claims as wrong “in fact and law”.
If the allegations of SEC would be proven true, Goldman will then be paying fines for it. The Financial Service Authority (FSA) will then be liaising the investigation between SEC and the Goldman Sachs.
As to the side of the company, chief executive Lloyd Blankfein said in a statement, “In light of recent events involving the firm, we appreciate the support of our clients and shareholders, and the dedication and commitment of our people,”
“Our performance in the first quarter reflects more signs of growth across the economy and the strength of our client franchise,” Blankfein said.
The company has acknowledged the suit against them and chief financial officer David Viniar, as well as Goldman’s co-general counsel, has been planning to address the SEC complaint during a conference call with investors at 8 a.m. ET.Follow us on Twitter to get free up-to-date news via tweets from the World Correspondents, or you can subscribe to us by entering your e-mail below. You can confirm your free subscription by clicking the confirmation link that will be sent to your e-mail address. Once you've confirmed, then you're good to go.