On Tuesday, Goldman Sachs showed as it capped big-bank earnings release with a low performance. Results showed that first quarter revenue dropeed 40% from the previous year., net profit fell 56% and the firm’s return on equity was an plunging 6.4%. Despite the low numbers, Goldman Scahs’s group members such as J.P. Morgan Chase, Bank of America, Citigroup and Morgan Stanley turned in also in the kind of results that would have the analyst crying.
To all of the pain felt by the big banks, there were no other big trading missteps and most importantly, no multibillion-dollar losses. No need for executives to reassure the anxious investors about having a sufficient liquidity. As a matter of reality, the “Big Five” of Wall Streeat earned nearly around $14 Billion in total in terms of net profit for the first quarter.
The first quarter showed a vivid argument that regulators have gotten safer and more boring bank system that they hoped for.