Goldman Sachs Reveals High Profits
July 14, 2009 by Miranda Marquit
Filed under Finance
Concerns of about the economy have partly been in relation to bank performances. However, Quarter 2 earnings should put these concerns to rest. 
Goldman Sachs revealed its profit for Quarter 2, beating estimates and resulting in the assumption that the banking sector is on its way to recovery. Reuters reports on the good numbers Goldman posted for the second quarter of 2009 :
Wall Street’s largest surviving investment bank reported net income for common shareholders of $2.7 billion , or $4.93 a share, compared with a pro-forma $2.05 billion, or $4.58 a share a year earlier.
Stripping out extraordinary items, Goldman earned $4.93 a share, beating analysts’ consensus forecast of $3.39, according to Reuters estimates.
The news should offer some relief to companies and individuals. The hope is that now that banks appear to be finding their footing again, it should be possible to convince them to start giving out loans again . Businesses need loans to keep going, and individuals need loans to continue the current cycle of a debt-based economy. And, while you might not agree with a debt-based economy (for individuals at least), the fact is that businesses need access to capital through borrowing.
Image: Goldman Sachs Tower in New Jersey. Source: wallyg via Flickr
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