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GS -3% PM, Goldman profit slides on SEC charge, revenue drops

Goldman revenue drops 36 percent, falls shorts of forecasts adding to investor concerns

Stephen Bernard, AP Business Writer, On Tuesday July 20, 2010, 8:24 am

NEW YORK (AP) -- Goldman Sachs Group Inc. has reported its second-quarter net income fell 83 percent to $453 million as its trading revenue fell and it booked a charge for its settlement of civil fraud charges with the Securities and Exchange Commission.

The company's revenue fell short of expectations and sent stock prices falling. Goldman followed IBM Corp., which late Monday reported revenue that disappointed investors.

Goldman's trading revenue fell along with that of other big banks that were hard by the spring plunge in the stock market. The drop in their revenue is adding to investors' concerns about how new federal regulations will affect banks' ability to profit from trading operations.

The company took a $550 million charge to cover the cost of the settlement with the SEC that was announced last week.

Excluding the settlement and other one-time costs, net income after payment of dividends on preferred stock came to $2.75 per share, easily topping the $2.08 analysts forecast.

Revenue fell 36 percent to $8.84 billion, short of the $8.94 billion predicted by analysts.

Shares are down $3.68, or 2.5 percent, at $142.00 in pre-opening trading.
http://finance.yahoo.com/news/Goldman-profit-slides-on-SEC-apf-533644931.html?x=0