Goldman Sachs, the worst performer in the Dow Jones Industrial Average this year, climbed Tuesday after blunting a plunge in first-quarter revenue by cutting costs deeper than analysts predicted and vowing to do more if needed.
“The performance was not great in the first quarter and, as a result, you saw compensation and benefits expense down 40% year-over-year,” Chief Financial Officer Harvey Schwartz said in a conference call with analysts. “We are shareholders, and we are doing things that you would expect shareholders to do.”
Goldman Sachs, the last of the big Wall Street banks to report earnings, joined its four biggest rivals in slashing expenses to mitigate profit and revenue declines. For Lloyd Blankfein, who’s trying to ride out a bond-trading slump compounded by market swings and stiffer regulations, revenue was the lowest for a first quarter in his decade-long tenure as CEO.
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