Our Chief Financial Officer, David Viniar, will now review the firm's results. David?David Viniar Thanks, Dane. I'd like to thank all of you for listening today. I'll give an overview of our fourth quarter full year results, and then take your questions. My remarks today will be focused on our new segment disclosure that was discussed in our Business Standards Committee report. The Business Standards Committee evaluated the firm's public financial disclosures with the objective of improving our standards of transparency and disclosure by more clearly explaining business activities and performance, and how that relates to serving our clients. The committee recommended changing the firm's three previous business segment into the following four business segments: Investment Banking, Institutional Client Services, Investing and Lending and Investment Management. The composition of the new four segments is described in greater detail in our 8-K dated January 11, 2011. Full year and net revenues for 2010 was $39.2 billion. Net earnings were $8.4 billion, and earnings per diluted share were $13.18. These results generated an adjusted return of common equity of 13.1%, which is our reported return of common equity excluding the U.K. bank payroll tax, the SEC settlement and the impairment of our New York Stock Exchange Designated Market Maker rights. If these items are included, our return on common equity for 2010 was 11.5%. Over the past year, book value per share was up 10% to $128.72. The fourth quarter net revenues were $8.6 billion. Net earnings were $2.4 billion and earnings per diluted share were $3.79. During 2010, market participants were faced with a series of broad macroeconomic concerns. European sovereign risk came under heightened scrutiny periodically during the year. Investors have also been intensely focused on the U.S. mortgage market regarding procedural concerns, associated with home foreclosures and the potential for mortgage put back risks.
Throughout the year, global financial regulation continue to be a concern, specifically, the implications of the Dodd-Frank Act and Basel III. Finally, the trajectory of the global economy was heavily debated, and there were growing fears about the potential for inflation in growth markets. The ultimate consequences of these concerns lead to greater risk conversions, a deterioration and conviction among institutional investors and thus, a steady decline in client activity.This reduction of client activity occurred across a broad set of businesses within Investment Banking and FICC and equities client execution. Despite the difficult economic backdrop and lower levels of client business, the firm produced a solid 13% adjusted return on common equity, which is a testament to the strength and breadth of our client franchise and the commitment of our people. I'll now review each of our businesses. Investment Banking produced fourth quarter net revenues of $1.5 billion, up 30% in the third quarter due to significant increases in Financial Advisory and Equity Underwriting revenues. For the full year, Investment Banking net revenues were $4.8 billion, down 3% from 2009, with a 9% improvement in Financial Advisory, partially mitigating an 11% decline in Underwriting. Within Investment Banking, fourth quarter Advisory revenues were $628 million, up 26% from the third quarter. Goldman Sachs ranked first in worldwide announcement, completed M&A globally for calendar 2010. We advice a number of important transactions to close in the fourth quarter, including for Brookfield Asset Management, which led to $24 billion restructuring of general growth properties, E.On's $7.6 billion sales to PPL Corporation, and United Airlines $6.5 billion merger with Continental Airlines. We're also adviser on a number of significant announced transactions including NSTAR's $17.5 billion merger vehicles with Northeast Utilities, Earl Collies [ph] $9.6 billion acquisition of Silvenate [ph] and Toronto Dominion Bank, $6.3 billion acquisition of Chrysler Financial. Read the rest of this transcript for free on seekingalpha.com