Goldman Sachs' net surges on investment banking
"While economic conditions remained challenging for much of the last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders," Goldman's CEO Lloyd Blankfein said in a statement Wednesday.
Goldman differs from other big U.S. banks because it deals almost exclusively with institutions, rather than consumers. Its clients are usually mutual funds, international corporations, other banks and similar firms.
Revenue for the fourth quarter rose to $9.24 billion, 53 percent higher than in the same period a year ago, beating analysts' estimates of $7.97 billion.
Goldman earned $5.60 on a per-share basis, compared with the average analysts forecast of $3.71, according to data provider FactSet.
The Federal Reserve announced today that Goldman has agreed to pay $330 million to settle federal complaints that it wrongfully foreclosed on homeowners who should have been allowed to stay in their homes.
The agreement was similar to deals struck earlier this month with 10 other major banks and mortgage lenders. The money will be used to pay compensation to homeowners, to reduce mortgage balances and to forgive outstanding principal on home sales that generated less than borrowers owed on their mortgages.
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