Goldman Cashes In on Banks' Misery

Goldman Sachs(GS) has grown adept at making lemonade out of the lemon that is today's financial services industry.

Wachovia(WB) recently disclosed that it hired Goldman to help it figure out what to do with its giant portfolio of troubled loans. The firm also has also been the go-to advisor when it comes to helping struggling banks raise equity, working with banks like Wachovia, Royal Bank of Scotland(RBS) and State Street(STT) to raise money amid the stubborn housing and credit slump.

Goldman, already standing out by continuing to earn quarterly profits while its main rivals are bleeding from wounds inflicted by the U.S. mortgage market, appears to be doing an exceptionally good job of making money by helping financial companies dig out of the mess they've found themselves in.

Goldman has earned an estimated $596.93 million this year by raising equity for financial companies, according to figures prepared for TheStreet.com by the data firm Dealogic. That figure, boosted by Goldman's share of the $550.21 million in fees split by eight firms in Visa's(V) March initial public offering, compares to $161.34 million last year. It's also at least $110 million more than the firm's closest rival, Citigroup(C), which earned $481.13. It could not be determined whether Citigroup's total got an artificial boost from the $8.4 billion in common and convertible equity it raised for itself this year.

"Goldman Sachs is proud of the role we have played in helping financial institutions to weather these difficult market conditions," Goldman spokesman Michael DuVally says.