Goldman Sachs on Wednesday said earnings fell by a whopping 58% in the second quarter as the Wall Street giant blamed a retreat from consumer businesses and declining investment values for its worst results in three years.
The dreadful performance still managed to fall short of Wall Street estimates — even after Goldman boss David Solomon warned analysts in the run-up to the earnings release that they should lower their expectations.
Goldman reported that it earned $3.08 a share — lower than the $3.18 analysts had predicted.
The bank’s revenue plummeted 8% to $10.9 billion, according to the report.
“This moment in the economic cycle creates meaningful headwinds for Goldman Sachs,” Solomon told analysts on a conference call. “We are making tough decisions that are driving the strategic evolution of the firm. Given both these factors, it should come as no surprise that we’re going to a period of lower results.”
Solomon did highlight seeing positive signs on the horizon in investment banking.
“It definitely feels better over the course of the last six, eight weeks,” Solomon told analysts on a conference call. “This is obviously a tough quarter,” but he added “the environment feels better.”
He cited activity picking up in equity capital markets and a revival of client discussions on mergers and acquisitions.
Goldman shares closed up 1% at $340.55.
“The bar was relatively low heading into the quarter,” wrote Citigroup analyst Keith Horowitz. “When we compare the results against our estimates, we find that core trends were generally positive,” helped by equities financing and investment banking.
The results were the bank’s worst since the second quarter of 2020, when it took writedowns over a corruption scandal linked to Malaysian state fund 1MDB.
Goldman took a $504 million hit tied to its GreenSky business, which facilitates home improvement loans to consumers, and $485 million related to its real estate investments.
Goldman agreed to acquire GreenSky for $2.2 billion in 2021 and later closed the deal at $1.7 billion.
The bank also took $615 million in credit losses including writedowns related to its consumer loans and business.
Goldman’s Marcus unit was also folded into its merged asset and wealth management arm last year, as the investment bank began pulling back from retail banking.
Goldman’s terrible quarter looked even worse compared to rivals JPMorgan Chase, Bank of America and Morgan Stanley, which all reported strong earnings in the past week.
JPMorgan announced it raked in $14 billion in profit in the second quarter despite CEO Jamie Dimons dire predictions for the economy, which has been saddled with sky-high levels of inflation in recent years.
Goldman’s results are likely to ratchet up pressure on Solomon, whose leadership and management style have been called into question by partners and rank-and-file employees.
Last month, The Post was the first to report that Goldman’s board was beginning to re-evaluate Solomon in the wake of an exodus of top talent from the Wall Street firm.
Since Solomon took the helm in 2018, Goldman partners have complained over their skimpy bonuses, his costly venture into consumer banking, and his side hustle as a DJ.
Donald Trump’s announcement that he wants to “develop” Gaza and turn it into the “Riviera of the Middle East” has been described as “absurd” and “entirely unrealistic”.
During a joint news conference with Israeli Prime Minister Benjamin Netanyahu late on Tuesday, Mr Trump proposed that the two million people living in Gaza could be moved to Jordan, Egypt – and beyond.
While it is not clear how Gaza will be rebuilt when the current conflict between Hamas and Israel ends – it is equally uncertain how the US would come to “own” Gaza, resettle its population, and redevelop the land.
What did Trump say about the Gaza Strip?
Mr Trump described Gaza as a “demolition site” where “virtually every building is down”.
Laying out his idea of what would happen beyond an Israel-Hamas ceasefire, he proposed: “The US will take over the Gaza Strip and we will do a job with it too.”
He said America would be “responsible for dismantling all of the dangerous unexploded bombs and other weapons on the site”, before it would “get rid of the destroyed buildings”, and “level it out”.
He envisioned an “economic development”, which he described as the “Riveria of the Middle East” – that would create thousands and thousands of jobs”.
“Everybody I’ve spoken to loves the idea of the United States owning that piece of land, developing and creating thousands of jobs,” he added.
Gaza’s two million people would not return to their territory under Mr Trump’s plans.
Instead, he suggested building “various domains” for them to “permanently… live out their lives in peace and harmony instead of having to go back and do it again”.
This could take the form of “numerous sites” or “one large site”, he added.
The only locations he mentioned by name were Jordan and Egypt, which he said, despite their leaders consistently refusing to resettle more Palestinian refugees, would “give us the kind of land we need to get this done”.
He described the new sites as a “beautiful area to resettle people, permanently in nice homes, where they can be happy and not shot… and killed… like what’s happening in Gaza”.
He said “neighbouring countries of great wealth” could finance them – without stipulating to what extent this would involve the US.
There were no details on whether the plans change the current US position of a two-state solution for the Israeli and Palestinian people.
Who controls Gaza – and who has occupied it in the past?
Gaza has been under the control of Hamas since 2007 – after it dominated the 2006 elections and subsequent violent clashes with fellow Palestinian group Fatah.
The area made up of Gaza, Israel, and the West Bank has a long and complicated history – with both Israel and Palestinians laying claim to various parts of it.
In 1917, the British took control of what was then known as Palestine from the Ottoman Empire.
Under the Balfour Declaration, they promised to create a Jewish homeland there.
Jewish people then began migrating to the region in large numbers – accelerated by the threat of Nazism in Europe and the Second World War, which created tension with the Palestinian people already living there.
When the United Nations was set up after the war in 1947, it proposed a partition plan – whereby roughly 45% of the land would belong to the Palestinian people and 55% to Jewish people. Jerusalem, which has particular sensitivities because of its religious significance to both sides, was proposed as a separate international territory.
This plan was never actioned – and instead – the state of Israel was declared in 1948.
The Arab-Israeli war that broke out immediately after the declaration saw 750,000 Palestinian people forced from their homes in what was known as the Nakba – or “catastrophe” in English. They were given refugee status by the UN and fled to neighbouring countries.
The Palestinians retained control of two small areas – what we now know as Gaza and the West Bank.
During the Six-Day War in 1967, Israel occupied Gaza, the West Bank, and East Jerusalem. They also took control of the Golan Heights, an area belonging to Syria. This saw hundreds of thousands more Palestinians forced from their homes.
During his first presidency, Donald Trump recognised Israel’s control of the Golan Heights.
Different groups have fought for control of Gaza since then – including Hamas and the Palestinian Authority.
There was hope for a two-state solution – one Israel and one Palestine – when their leaders signed the Oslo Accords committing to peace in the region within five years.
This never materialised, however, and Gaza has become increasingly cut off from outside resources.
The UN runs refugee camps for millions of displaced Palestinians – both inside Gaza and the West Bank – and in the neighbouring countries of Jordan, Lebanon, and Syria.
Before the 2023 war broke out between Israel and Hamas, tensions were high among Palestinian communities as Israel continued to expand settlements in the West Bank and East Jerusalem.
Trump Gaza plan ‘absurd’ and US has ‘no authority’
Egypt, Jordan, and Saudi Arabia, which as fellow Arab nations support the Palestinian cause, immediately rejected Mr Trump’s ideas.
They, along with Syria and Lebanon, are already struggling to support millions of displaced Palestinians.
Hamas described the proposals as “ridiculous and absurd” in a statement from one of its officials Sami Abu Zuhri.
The Palestinian Liberation Organisation reiterated its support for a two-state solution.
Sky News Middle East correspondent Alistair Bunkall said the plans have left politicians and diplomats across the region “speechless”.
“It’s entirely unrealistic for so many reasons,” he says.
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0:47
Palestinians react to Trump’s Gaza comments
Forcing Palestinians from Gaza would breach their right under international law to self-determination – and would constitute ethnic cleansing, he adds.
It would also, according to the chair of the UK’s Defence Select Committee, Conservative MP Tobias Ellwood, require “a minimum of 50,000” US troops in the region for several years.
This would prove a “massive logistical challenge”, as US military resources in other parts of the world have to be redirected there.
It is also out of step with Mr Trump’s previous indications he wants to scale back US involvement in the Middle East – and adopt a more protectionist foreign policy.
Many Gazans have endured horrendous living conditions in the hope Gaza will be rebuilt as part of an independent Palestinian state.
As such, most would not want to leave, Bunkall says, adding: “Ask any Gazan and they will tell you it is their home, however hellish.”
The international community has been involved in the rebuilding of war-torn countries throughout the 20th and 21st centuries. In this sense, the US could be mandated as a “reconstruction power” in Gaza.
However, in cases such as post-Second World War Germany or Japan – allies handed back the territory after rebuilding – not resettled their residents elsewhere.
Donald Trump’s announcement that he wants to “develop” Gaza and turn it into the “Riviera of the Middle East” has been described as “absurd” and “entirely unrealistic”.
During a joint news conference with Israeli Prime Minister Benjamin Netanyahu late on Tuesday, Mr Trump proposed that the two million people living in Gaza could be moved to Jordan, Egypt – and beyond.
While it is not clear how Gaza will be rebuilt when the current conflict between Hamas and Israel ends – it is equally uncertain how the US would come to “own” Gaza, resettle its population, and redevelop the land.
What did Trump say about the Gaza Strip?
Mr Trump described Gaza as a “demolition site” where “virtually every building is down”.
Laying out his idea of what would happen beyond an Israel-Hamas ceasefire, he proposed: “The US will take over the Gaza Strip and we will do a job with it too.”
He said America would be “responsible for dismantling all of the dangerous unexploded bombs and other weapons on the site”, before it would “get rid of the destroyed buildings”, and “level it out”.
He envisioned an “economic development”, which he described as the “Riveria of the Middle East” – that would create thousands and thousands of jobs”.
“Everybody I’ve spoken to loves the idea of the United States owning that piece of land, developing and creating thousands of jobs,” he added.
Gaza’s two million people would not return to their territory under Mr Trump’s plans.
Instead, he suggested building “various domains” for them to “permanently… live out their lives in peace and harmony instead of having to go back and do it again”.
This could take the form of “numerous sites” or “one large site”, he added.
The only locations he mentioned by name were Jordan and Egypt, which he said, despite their leaders consistently refusing to resettle more Palestinian refugees, would “give us the kind of land we need to get this done”.
He described the new sites as a “beautiful area to resettle people, permanently in nice homes, where they can be happy and not shot… and killed… like what’s happening in Gaza”.
He said “neighbouring countries of great wealth” could finance them – without stipulating to what extent this would involve the US.
There were no details on whether the plans change the current US position of a two-state solution for the Israeli and Palestinian people.
Who controls Gaza – and who has occupied it in the past?
Gaza has been under the control of Hamas since 2007 – after it dominated the 2006 elections and subsequent violent clashes with fellow Palestinian group Fatah.
The area made up of Gaza, Israel, and the West Bank has a long and complicated history – with both Israel and Palestinians laying claim to various parts of it.
In 1917, the British took control of what was then known as Palestine from the Ottoman Empire.
Under the Balfour Declaration, they promised to create a Jewish homeland there.
Jewish people then began migrating to the region in large numbers – accelerated by the threat of Nazism in Europe and the Second World War, which created tension with the Palestinian people already living there.
When the United Nations was set up after the war in 1947, it proposed a partition plan – whereby roughly 45% of the land would belong to the Palestinian people and 55% to Jewish people. Jerusalem, which has particular sensitivities because of its religious significance to both sides, was proposed as a separate international territory.
This plan was never actioned – and instead – the state of Israel was declared in 1948.
The Arab-Israeli war that broke out immediately after the declaration saw 750,000 Palestinian people forced from their homes in what was known as the Nakba – or “catastrophe” in English. They were given refugee status by the UN and fled to neighbouring countries.
The Palestinians retained control of two small areas – what we now know as Gaza and the West Bank.
During the Six-Day War in 1967, Israel occupied Gaza, the West Bank, and East Jerusalem. They also took control of the Golan Heights, an area belonging to Syria. This saw hundreds of thousands more Palestinians forced from their homes.
During his first presidency, Donald Trump recognised Israel’s control of the Golan Heights.
Different groups have fought for control of Gaza since then – including Hamas and the Palestinian Authority.
There was hope for a two-state solution – one Israel and one Palestine – when their leaders signed the Oslo Accords committing to peace in the region within five years.
This never materialised, however, and Gaza has become increasingly cut off from outside resources.
The UN runs refugee camps for millions of displaced Palestinians – both inside Gaza and the West Bank – and in the neighbouring countries of Jordan, Lebanon, and Syria.
Before the 2023 war broke out between Israel and Hamas, tensions were high among Palestinian communities as Israel continued to expand settlements in the West Bank and East Jerusalem.
Trump Gaza plan ‘absurd’ and US has ‘no authority’
Egypt, Jordan, and Saudi Arabia, which as fellow Arab nations support the Palestinian cause, immediately rejected Mr Trump’s ideas.
They, along with Syria and Lebanon, are already struggling to support millions of displaced Palestinians.
Hamas described the proposals as “ridiculous and absurd” in a statement from one of its officials Sami Abu Zuhri.
The Palestinian Liberation Organisation reiterated its support for a two-state solution.
Sky News Middle East correspondent Alistair Bunkall said the plans have left politicians and diplomats across the region “speechless”.
“It’s entirely unrealistic for so many reasons,” he says.
Please use Chrome browser for a more accessible video player
0:47
Palestinians react to Trump’s Gaza comments
Forcing Palestinians from Gaza would breach their right under international law to self-determination – and would constitute ethnic cleansing, he adds.
It would also, according to the chair of the UK’s Defence Select Committee, Conservative MP Tobias Ellwood, require “a minimum of 50,000” US troops in the region for several years.
This would prove a “massive logistical challenge”, as US military resources in other parts of the world have to be redirected there.
It is also out of step with Mr Trump’s previous indications he wants to scale back US involvement in the Middle East – and adopt a more protectionist foreign policy.
Many Gazans have endured horrendous living conditions in the hope Gaza will be rebuilt as part of an independent Palestinian state.
As such, most would not want to leave, Bunkall says, adding: “Ask any Gazan and they will tell you it is their home, however hellish.”
The international community has been involved in the rebuilding of war-torn countries throughout the 20th and 21st centuries. In this sense, the US could be mandated as a “reconstruction power” in Gaza.
However, in cases such as post-Second World War Germany or Japan – allies handed back the territory after rebuilding – not resettled their residents elsewhere.
Rivera’s role would primarily be administrative, and he would be involved in oversight of the program and its big-picture needs, including budget, coaching staff and the student-athlete experience, a source told ESPN’s Adam Rittenberg.
Belichick was hired as North Carolina’s head coach in December after a decorated NFL coaching career in which he won eight Super Bowls, including six as the New England Patriots‘ head coach.
Rivera, 63, is a member of the Cal Athletics Hall of Fame and had 337 tackles for the school as a linebacker. He was an All-American in 1983 when he set a school record with 26.5 tackles for loss, including 13 sacks.
Rivera, who was fired by the Commanders last year, interviewed for both the New York Jets and Chicago Bears head coaching vacancies last month.
Rivera, 63, has spent his entire coaching career in the NFL, beginning in 1997 when he was a defensive quality control coach for the Chicago Bears. Before being hired as the Panthers’ head coach in 2011, he served as a defensive coordinator with both the Bears and San Diego Chargers.
He has a 102-103-2 record as an NFL head coach and led the Panthers to the Super Bowl in the 2015 season.
Before becoming a coach, he played nine seasons as a linebacker for the Chicago Bears, who selected him in the second round of the 1984 draft. He was a member of the Bears’ 1985 Super Bowl champion squad.