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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.

With Post wires

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Politics

Sir Keir Starmer says next election will be ‘open fight’ between Labour and Reform

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Sir Keir Starmer says next election will be 'open fight' between Labour and Reform

Sir Keir Starmer has said the next election will be an “open fight” between Labour and Reform UK.

The prime minister, speaking at a conference alongside the leaders of Canada, Australia and Iceland, said the UK is “at a crossroads”.

“There’s a battle for the soul of this country, now, as to what sort of country do we want to be?” he said.

“Because that toxic divide, that decline with Reform, it’s built on a sense of grievance.”

It is the first time Sir Keir has explicitly said the next election would be a straight fight between his party and Reform – and comes the day before the Labour conference begins.

Just hours before, after Sky News revealed Nigel Farage is on course to replace him, as a seat-by-seat YouGov poll found an election held tomorrow would result in a hung parliament, with Reform winning 311 seats – just 15 short of the 326 needed to win overall.

Once the Speaker, whose seat is unopposed, and Sinn Fein MPs, who do not sit in parliament, are accounted for, no other party would be able to secure more MPs, so Reform would lead the government.

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YouGov: Farage set to be next PM

Sir Keir said there is a “right-wing proposition” the UK has not had before, as it has been decades of either a Labour or Tory government, “pitched usually pretty much on the centrepiece of politics, the centre ground of politics”.

The PM said Reform and its leader, Mr Farage, provide a “very different proposition” of “patriotic national renewal” under Labour and a “toxic divide”.

He described his Labour government of being “capable of expressing who and what we are as a country accurately and in a way where people feel they’re valued and they belong, and that we can actually move forward together”.

Sir Keir referenced a march down Whitehall two weeks ago, organised by Tommy Robinson, as having “sent shivers through the spines of many communities well away from London”.

Elon Musk appeared via videolink at the rally and said “violence is coming to you”, prompting accusations of inciting violence.

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The PM said Reform presents a 'toxic divide
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The PM said Reform presents a ‘toxic divide

The prime minister said the choice for voters at the next election, set to be in 2029, “is not going to be the traditional Labour versus Conservative”.

“It’s why I’ve said the Conservative Party is dead,” he added.

“Centre-right parties in many European countries have withered on the vine and the same is happening in this country.”

Reacting to Sir Keir’s comments, a Reform UK spokesman said: “For decades, the British people have been betrayed by both Labour and the Conservatives.

“People have voted election after election for lower taxes and controlled immigration, instead, both parties have done the opposite.

“The public are now waking up to the fact Starmer is just continuing the Tory legacy of high taxes and mass immigration.”

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Sports

Sources: LSU RB Durham doubtful vs. Ole Miss

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Sources: LSU RB Durham doubtful vs. Ole Miss

LSU leading rusher Caden Durham is doubtful for Saturday night’s game at Ole Miss because of an ankle injury, sources told ESPN.

Durham was injured in last Saturday’s 56-10 win over SE Louisiana and has been limited in practice all week. According to sources, he is still dealing with the injury and did not run well in the team’s final walk-through Friday.

Durham had been listed as questionable on the SEC availability report on Thursday.

Durham easily leads the Tigers with 213 yards on 52 carries. LSU’s second-leading rusher, Harlem Berry, has 87 yards on 15 carries. Sophomore Ju’Juan Johnson is expected to see more action, as will junior Kaleb Jackson.

LSU’s offense is No. 111 nationally in rushing, averaging just 116.8 yards per game. That’s the second-lowest average in the SEC behind South Carolina (80.3).

The good news for the Tigers is that quarterback Garrett Nussmeier appears to have worked through a torso injury and is back in form. LSU has the country’s No. 30 passing offense.

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Technology

Musk, Thiel, Bannon named in partially redacted Epstein documents released by Democrats

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Musk, Thiel, Bannon named in partially redacted Epstein documents released by Democrats

Charges against Jeffrey Epstein were announced on July 8, 2019 in New York City. Epstein will be charged with one count of sex trafficking of minors and one count of conspiracy to engage in sex trafficking of minors.

Stephanie Keith | Getty Images News | Getty Images

Elon Musk, Peter Thiel and former Trump White House advisor Steve Bannon are among those who appeared in partially redacted files related to the late convicted sex offender Jeffrey Epstein that were released on Friday by Democrats in the House Oversight Committee.

The committee earlier embarked on a probe to evaluate whether the federal government mishandled its case against Epstein and co-conspirator Ghislaine Maxwell, who is serving a 20-year prison sentence following a 2022 conviction for recruiting teenage girls to be sexually abused by Epstein.

President Donald Trump had promised voters on the campaign trail that he would release government documents related to Epstein, who was arrested in the summer of 2019 on sex trafficking charges and died in a New York federal prison, reportedly by suicide, before trial.

However, Trump has refused to endorse the release of any Epstein files since returning to the White House in January, and Republicans in Congress have followed his lead, keeping the documents out of the public’s view.

Democrats in the committee on Friday released redacted pages from a new batch of files they obtained through their probe without giving their Republican peers advanced notice. They were rebuked for the move.

In a statement on Friday, the committee said that the batch included 8,544 documents in response to a subpoena in August, and that, “Further review of the documents, which were redacted to protect the identity of victims, is ongoing.”

The latest batch of documents received by the committee from the Justice Department contained itineraries and notes by Epstein memorializing invitations he’d sent, trips he’d planned and meetings he’d booked with tech and business leaders.

Demonstrators gather for a press conference calling for the release of the Jeffrey Epstein files outside the United States Captiol on Wednesday September 03, 2025 in Washington, DC.

The Washington Post | The Washington Post | Getty Images

One of the itineraries indicated that Epstein expected Musk to make a trip to his private island in the U.S. Virgin Islands on Dec. 6, 2014, but then asked “is this still happening?”

Musk told Vanity Fair in 2019 that he had visited Epstein’s New York City mansion and that Epstein “tried repeatedly to get me to visit his island,” but the Tesla CEO had declined.

In June, Musk wrote in a post on X, that he thought Trump and his administration were withholding Epstein-related files from the public view in order to protect the president’s reputation.

“Time to drop the really big bomb: @realDonaldTrump is in the Epstein files,” Musk, who was in the midst of a public spat with the president, wrote at the time. “That is the real reason they have not been made public. Have a nice day, DJT!”

Trump was mentioned in previously released court documents from the Epstein case, but has not been formally accused of wrongdoing.

Musk started the year leading the Trump administration’s Department of Government Efficiency (DOGE), an effort to slash the size of the federal government and reduce the power of various regulatory agencies. He left DOGE in May, and he and the president proceeded to hurl insults at each other in public over a number of disagreements.

However, Trump and Musk remain close enough that they sat together at a memorial service for Charlie Kirk earlier this month after the right-wing activist was assassinated while speaking at a university in Utah.

The partially redacted files also indicated Epstein had breakfast with Bannon on Feb. 16, 2019, and lunch with investor Peter Thiel on Nov. 27, 2017. Bannon is a long-time Trump ally, and Thiel was a major backer of Trump ahead of the 2016 election who spoke at the Republican National Convention.

The files also mentioned that Epstein booked a “tentative breakfast party” with Microsoft founder Bill Gates, historically a supporter of Democrats, in December 2014.

Musk, Thiel, Bannon and Gates weren’t immediately available for comment.

WATCH: House Speaker Mike Johnson on Epstein files

House Speaker Mike Johnson on Epstein files: We want the American people to see it

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