Chillin' out till it needs to be funded
Goldman Sachs came out with a very subdued $0.78 per share when the morning meeting got underway. GS rudimentary Pr then added back the UK bonus tax and the $550m cheap settlement with SEC to report $2.75 before extraordinary items. Things are not really bad for the firm though. Trading revenue is down 38% like at other firms but Investment Banking revenue had a strong showing up 28% in Advisory business making fees at $472 million nearly 50% of the divisions $917 million revenues.
Trading ( reports all Principal Investments incl subsidiaries) still reported a $6.55bn and that means a lot when Fixed Income and Commodities got ‘short stopped’ at $4.40 billion. Equities $1.21billion was 2/3rds lower than last year and Principal Investments were mostly $903 million from the sale of its ICBC stake.
Interestingly Asset Management showed up sequential growth over March and Operating Expenses were a sixth lower than last year and 3% lower than March at $7.39 billion of which the Non Compensation expenses were higher by 45% over the same period last year and 41% higher than March at $2.99 billion Thus the Comp to Income ratio for the six months of 2010 is down to 43%
Buffet’s Series G preferred stock paid out a cool $2500 per share to be paid on Sept 30, 2010. Tax rate was a high 32% though and an even higher 38% including the UK tax and the SEC settlement and a total of $160 million is being paid out as dividend on preferred stock. Warren Buffet’s 50,000 shares would earn him $125 million
For those interested bond manager PIMCO is out with a new fund that insures Black swan events capping declines of more than 15% in the market according to the day’s bloomberg commentary