Goldman Shrugs Off Subprime

Overall, Goldman said first-quarter revenue surged to $12.73 billion from $9.41 billion last year. Net revenue in trading and principal investments totaled $9.42 billion, 35% higher than the first quarter of 2006 and 42% above the fourth quarter.

Revenue from trading and principal investments -- the largest contributor to Goldman's businesses -- jumped 35% from the first quarter of 2006 and 42% from the fourth quarter to $9.42 billion.

That said, much of the sturm und drang in the subprime occurred after the close of the quarter. That means the bank might not realize the full impact of subprime until next quarter, Mayo's report says.

So it seems that the subprime schadenfreude will have to wait another quarter -- or at least until tomorrow and Thursday, when Lehman Brothers (LEH Quote) and Bear Stearns (BSC Quote) report their earnings.