Goldman went from revenues of Negative $1.5B, to Positive $9.5 Billion
By Daniel at 15 April, 2009, 11:29 am
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Breakdown the numbers and here is how they did it:
The Revenues from Investment Banking (core business) was DOWN.
The Revenues from Stock Trades DOWN HUGE. (No AIG left to Short)
The Revenues from Asset Management and Security Services DOWN
The Commissions and Benefits EXPENSES WENT UP $5.21 Billion!
Their Tax Rate went from -41% (NEGATIVE 41% due to write offs and losses)
to 31%!
So Where did they make their Money?
FICC, and PI both division of their Trading Unit
FICC is their FIXED INCOME, CURRENCIES, and COMMODITIES Trading business.
PI is their Principal Investment Trading Business
I’ll even give you 8 Billion cause of the new Mark to Fiction Rules, but you are still stuck with double digit revenue from your gambling biz unit!
and yes I know what Dave said on the Call…but just look at the numbers they reported…
Goldman Earnings Analysis:
Q408:(Rev:-$1.58B, Earn:-$2.12B, -$4.97)
Q109:(Rev: $9.43B, Earn:+$1.81B, +$3.23)
Q4 T1R: 11.6% to 15.6% ($20.8B Eq)
Q1 T1R: 15.6% to 16.0% (no new Eq)
Q4 IB: $1.03B (FA:$0.57B, UW:$0.46B)
Q1 IB: $0.82B (FA:$0.53B, UW:$0.29B)
Q4 Trades: -$4.36B (FICC:-$3.40B, Stocks:$2.64B*, PI: -$3.60B)
Q1 Trades: +$7.15B*(FICC:+$6.55B*, Stocks:$2.00B, PI: -$1.41B*)
Q4 AMSS: $1.74B (AM:$0.94B, SS:$0.80)
Q1 AMSS: $1.45B (AM:$0.95B, SS:$0.50)
Q4 Commissions: -$0.50B
Q1 Commissions: +$4.71B
Q4 Expenses: $2.5B
Q1 Expenses: $1.6B
Q4 Pre-Tax Profit: -$3.6B After-Tax: -$2.1B
Q1 Pre-Tax Profit: +$2.6B After-Tax: +$1.8B
Q4 TAX Rate: -41%*
Q1 Tax Rate: +31%
Q4 CAP: $233B (SH:$64.4B, Common: $47.90B, Preferred: $16.47B)
Q1 CAP: $252B (SH:$63.6B, Common: $47.05B, Preferred: $16.51B)
Q4 Book Value per Common: $98.68 (Tangible $88.00)
Q1 Book Value per Common: $98.82 (Tangible $88.02)
Q4 Equity offerings:
Common: $123, $5.8B
Buffet Preferred Warrants: $115, $5B (int 10%)
TARP Preferred Shares: $123, $10B (int 5%)
Q1 No new Offerings.
Q4 Total Common: 460M outstanding
Q1 Total Common: 476M outstanding
DoJ please subpoena the Head of the FICC Trading Unit, and the FICC book with EVERY SINGLE TRADE. I don’t want Lloyd and Dave in Congress saying they’ll get back with the answers in writing never.
Lloyd, Do you still have Gary running that business? If so could you please book him a one way ticket to Venezuela, and hire George Soros yesterday. No one is going to buy it unless you got someone like Soros as the head of the FICC.
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