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Goldman Sachs: Financial Winners & Losers

Goldman Sachs reported first-quarter earnings before the start of trading Tuesday.


Goldman Sachs and other stock prices brought current in this update




) --

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. Report

was among the losers of the financial sector Tuesday as regulatory fears outweighed a positive first-quarter earnings report.

Goldman Sachs

reported a first-quarter profit of $5.59 a share, which blew past the Thomson Reuters average estimate of $4.01 a share. Revenue was up 35.5% from a year ago to $12.78 billion, also better than forecasts.

Investment banking revenue climbed 44% from a year ago to $1.18 billion, although that was down 28% sequentially. Revenue from equity and debt underwriting was "significantly higher," Goldman Sachs said.

The earnings release came days after the

Securities and Exchange Commission

filed civil-fraud charges against Goldman Sachs, saying the bank defrauded investors by failing to disclose to investors vital information about its structured and marketed a synthetic collateralized debt obligation, or CDOs, tied to the performance of the subprime residential mortgage-backed securities.

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"In light of recent events involving the firm, we appreciate the support of our clients and shareholders, and the dedication and commitment of our people," Goldman Chairman and CEO Lloyd Blankfein said in a statement accompanying the earnings release.

In other

Goldman news

, the bank's London subsidiary will be investigated by the Financial Services Authority, Britain's financial regulator. The FSA said Tuesday it would be working closely with the SEC in the U.S.

The FSA is likely to focus on the

Royal Bank of Scotland

(RBS) - Get Royal Bank of Scotland Group Plc Report

, which paid $841 million to Goldman Sachs in 2007 to unwind its position in a fund acquired in the takeover of Dutch Bank

ABN Amro


The Associated Press



American International Group

(AIG) - Get American International Group, Inc. Report

is considering potential claims against Goldman Sachs and other Wall Street firms over losses incurred on $6 billion of insurance deals on mortgage-backed securities,

The Wall Street Journal

reported late Monday, citing a person familiar with the matter.

Goldman Sachs shares were lately down 1.5% to $160.83. The stock has fallen 12.3% over the last three sessions following the fraud allegations.

Other major U.S. bank stocks were gaining ground Tuesday.


(C) - Get Citigroup Inc. Report

, which was holding its

annual shareholder meeting

, gained 2% to $4.97,

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

rose 1.7% to $33.57,

Morgan Stanley

(MS) - Get Morgan Stanley Report

added 2.3% to $30.24,

JPMorgan Chase

(JPM) - Get JPMorgan Chase & Co. Report

climbed 0.7% to $45.72, and

Bank of America

(BAC) - Get Bank of America Corp Report

was up 0.7% to $18.52.

In other earnings news,

Regions Financial

(RF) - Get Regions Financial Corporation Report

said it swung to a loss of 21 cents a share in the first quarter, although that was narrower than the 27-cent-a-share loss Wall Street expected. Regions said non-performing assets, excluding loans held for sale, increased 5.4%, marking the third consecutive quarter of moderation in the overall growth rate.

Shares were Regions Financial were lately tacking on 3.6% to $8.63.


Marshall & Ilsley


beat analysts' expectations after reporting a first-quarter loss of 27 cents a share. Analysts polled by Thomson Reuters for a loss of 40 cents a share. Shares were jumping 10.3% to $9.28.


Bank of New York Mellon

(BK) - Get Bank of New York Mellon Corporation Report

shares were flat after the bank posted an adjusted first-quarter profit of 59 cents a share, which was above the Thomson Reuters average estimate for a profit of 53 cents a share. The bank said nonperforming assets rose 9% from a year ago to $459 million. The stock was only 4 cents higher at $32.18, having traded as low as $31.54 earlier in the session.

State Street

(STT) - Get State Street Corporation Report

shares also dropped after reporting quarterly results. The company said it earned 99 cents a share in the first quarter or 75 cents a share on an operating basis, which matched the Thomson Reuters average estimate. Operating-basis revenue of $2.12 billion was below the consensus target of $2.18 billion.

State Street was falling 4.6% to $45.08.

-- Written by Robert Holmes in Boston


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