An 'un-Goldmanlike quarter with revenue pressures on just about every business'

To see how Wall Street has changed over the past decade, look to Goldman Sachs under Lloyd C. Blankfein.

Bloomberg News reports that the company, once the most profitable securities firm, reported the lowest first-quarter revenue of Blankfein’s tenure as chief executive officer, which began June 2006. Return-on-equity, a closely watched measure of profitability, fell to 6.4%, well below where it needs to be to show investors the firm can create value.

The results on Tuesday stem from sweeping structural changes buffeting Wall Street and renewed questions about whether firms including Goldman Sachs are doing enough to adapt to the altered landscape. The bank has been trying to wait out a years-long slump in fixed-income trading to win market share and boost profits once conditions improve. But will the industry ever rebound -- and if so, will it be soon enough?

It was an “un-Goldmanlike quarter with revenue pressures on just about every business,” Glenn Schorr, an analyst at Evercore ISI, wrote in a note. While market tumult at the start of the year eventually subsided, “Goldman (and everyone else) really needs capital markets to open further,” he said.

To access the complete Bloomberg News article hit the link below:

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