Goldman Sachs reports 70% profit slump down to £454m

Lloyd Blankfein

Slump: Goldman Sachs Chairman Lloyd Blankfein

Goldman Sachs today belatedly joined the melée in the financial markets, reporting a 70% slump in profits.

The US investment bank’s third-quarter profits were $810 million (£454 million), a meagre return by its standards.

Goldman seemed until now to have had a magic touch, avoiding the credit crunch and subprime mortgage crisis with nimble dealings that aroused both jealousy and conspiracy theories.

Chairman and chief executive Lloyd Blankfein said: 'This was a challenging quarter as we saw a marked decrease in client activity and declining asset valuations.'

Investors were spooked by his remarks, and are nervous about what Goldman’s arch-rival, Morgan Stanley, has in store.

Goldman shares fell 12% to $119 in New York.

The profits compare with $2.8 billion in the same period a year ago, but still beat Wall Street expectations.

The results are the worst Goldman quarterly figures since it joined the stock market in 1999.

No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards.

We are no longer accepting comments on this article.

Who is this week's top commenter? Find out now