Goldman Cashes In on Banks' Misery

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

Wachovia(WB Quote) 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 Quote) and State Street(STT Quote) 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. ...