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New York - Investment giant Goldman Sachs on Tuesday said its profits fell 82% in the second quarter of the year against the same period last year.
Reporting net earnings of $613m, chief executive officer Lloyd Blankfein said the business environment had become tougher for the embattled firm.
"The market environment become more difficult during the second quarter, and as a result, client activity across our business declined," he said in a statement.
In first three months of the year, Goldman reported that profits had nearly doubled to $3.46bn.
Revenues in the second quarter reached $8.84bn, down 36% from the year before.
Compounding the decline, the New York-based firm reported a $600m hit from the introduction of a tax on executive compensation in Britain.
The announcement also came days after the firm said it had agreed to pay a record $550m to settle government fraud charges with the Securities and Exchange Commission.
Facing allegations of defrauding investors, the storied investment bank admitted it had made a "mistake" and given "incomplete" information to clients.
The SEC had accused Goldman of allowing a prominent hedge fund - Paulson & Co. - to put together a package of subprime mortgages that were sold to clients, but which Paulson was also betting against.
That settlement was included in Tuesday's report.
Net revenues in Goldman's all-important investment banking arm fell 36% versus the second quarter of 2009, revenues from trading also fell by 35%.
Pay and bonuses for 34 100 staff ate up 43% of revenue.
- AFP
