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Goldman Reports Massive $0.84 Loss Per Share, Prop Trading Loss Of $2.5 Billion, Comp Accrual Of $358,713 Per Employee
Posted By admin On October 18, 2011 @ 7:26 am In Money Watch | Comments Disabled
Zero Hedge 
October 18, 2011
Topline bloodbath Summary: Net revenues in Investment Banking were $781 million, 33% lower than the third quarter of 2010 and 46% lower than the second quarter of 2011. Net revenues in Financial Advisory were $523 million, up slightly from the third quarter of 2010.
Net revenues in the firm’s Underwriting business were $258 million, 61% lower than the third quarter of 2010. Net revenues in both equity underwriting and debt underwriting were significantly lower than the third quarter of 2010, reflecting a significant decline in industry-wide activity. The firm’s investment banking transaction backlog increased compared with the end of the second quarter of 2011.
Net revenues in Institutional Client Services were $4.06 billion, 13% lower than the third quarter of 2010 and 16% higher than the second quarter of 2011. Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.73 billion, 36% lower than the third quarter of 2010. And so on.
As for the number everyone in #OWS is looking for, “The accrual for compensation and benefits expenses (including salaries, estimated year-end discretionary compensation, amortization of equity awards and other items such as benefits) was $1.58 billion for the third quarter of 2011, a 59% decline compared with the third quarter of 2010.
The ratio of compensation and benefits to net revenues for the first nine mo nths of 2011 was 44.0%. Total staff levels decreased 4% compared with the end of the second quarter of 2011.” In a nutshell: for the first time in probably since the Lehman crisis, Goldman reported a massive loss in its prop trading division of $2.5 billion, and also based on LTM accured comp benefits and the total staff at period end of 34,200, average compensation amounted to $358,713/employee.
And the carnage visually:
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URLs in this post:
 Zero Hedge: http://www.zerohedge.com/news/goldman-reports-084-loss-expectations-011-revenues-plummets-359-expectations-437
 Image: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/09/Goldman%20P%26L%20breakdown.jpg
 Image: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/09/Goldman%20Prop%20Breakdown.jpg
 U.S. Postal Service posts $1.9 billion loss, despite efficiency efforts: http://www.prisonplanet.com/u-s-postal-service-posts-1-9-billion-loss-despite-efficiency-efforts.html
 Goldman Made Between $11 And $16 Billion In 2009 Trading CDS And Other Derivatives: http://www.prisonplanet.com/goldman-made-between-11-and-16-billion-in-2009-trading-cds-and-other-derivatives.html
 UBS Trader in $2 Billion Loss on Unauthorized Trade: http://www.prisonplanet.com/ubs-trader-in-2-billion-loss-on-unauthorized-trade.html
 John Taylor Says The Euro Is Like A “Headless Chicken”, States Prop Trading Makes Up 80% Of Goldman’s Revenue: http://www.prisonplanet.com/john-taylor-says-the-euro-is-like-a-headless-chicken-states-prop-trading-makes-up-80-of-goldmans-revenue.html
 JP Morgan’s 9 Billion Trading Loss: http://www.prisonplanet.com/jp-morgans-9-billion-trading-loss.html
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