The Ups and Downs of Goldman Sachs Two Quarters

first_img The Ups and Downs of Goldman Sachs Two Quarters Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / The Ups and Downs of Goldman Sachs Two Quarters The first and second quarters of 2016 told two different stories for Goldman Sachs as far as earnings and overall business operations: in the first quarter, everything was down; in the second quarter, everything is back up.According to the investment banking firm’s Q2 2016 earnings report released Tuesday, Goldman Sachs reported net earnings of $1.82 billion for Q2—an increase from $1.14 billion in the first quarter and from $1.05 billion in Q2 2015. Diluted earnings per common share in Q2 were $3.72, compared to $1.98 in the year-ago quarter and $2.68 for Q1 2016.Whereas challenges presented headwinds to nearly all of Goldman Sachs’ businesses in Q1, things ran somewhat more smoothly in Q2. There were still challenges in Q2 however; low interest rates, political uncertainty about global growth continued to pose challenges to Goldman Sachs’ Fixed Income, Currency, and Commodities Client Execution segments.“Despite the uncertainty created by Brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and by managing our business efficiently,” said Lloyd C. Blankfein, Chairman and CEO of Goldman Sachs.Also, Goldman Sachs announced in January that it had agreed to a $5 billion settlement in April with the Department of Justice over the sales of toxic mortgage-backed securities prior to the crisis; the settlement was made final in April. The firm reported net earnings of only $765 million in the fourth quarter of 2015 immediately after making the announcement about the settlement.A major difference in the earnings of Goldman Sachs between the second quarter a year ago and Q2 this year was lower net provisions for litigation and regulatory proceedings for Q2 this year ($126 million). Last year during the second quarter, the firm recorded $1.45 billion in net provisions for mortgage-related litigation and other regulatory matters. Non-compensation expenses were $2.14 billion in the second quarter, a decline of 40 percent from Q2 2015 (and an increase of 2 percent from Q1 2016).“The decrease compared with the second quarter of 2015 primarily reflected significantly lower net provisions for mortgage-related litigation and regulatory matters, which are included in other expenses,” the Q2 earnings report stated. “In addition, market development expenses were lower compared with the second quarter of 2015.”Click here to see Goldman Sachs’ complete Q2 earnings report. July 19, 2016 1,715 Views Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, TX. Born and raised in Texas, Kendall now works as the online editor for DS News. About Author: Kendall Baer Demand Propels Home Prices Upward 2 days ago Previous: Distressed Sales May Reach “Normal” By 2017 Next: Clayton Holdings Creates New Option for ‘Fix and Flip’ Lending Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, News Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Tagged with: Earnings Goldman Sachs Mortgage-Backed Securities Profitscenter_img The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Share Save Servicers Navigate the Post-Pandemic World 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Earnings Goldman Sachs Mortgage-Backed Securities Profits 2016-07-19 Kendall Baer Governmental Measures Target Expanded Access to Affordable Housing 2 days agolast_img read more

Read more

EC offers pension funds further two-year clearing exemption

first_imgThe European Commission has proposed a further two-year exemption, starting from August 2015, for pension funds having to clear their derivatives trades through central counterparty clearing houses (CCPs).In a report, the European executive said CCPs had failed to develop any infrastructure allowing pension funds to overcome the hurdles posed by clearing and that more time was required to devise solutions for the industry.It added that, ultimately, the objective was for pension scheme arrangements (PSAs) to use central clearing for their derivatives transactions, as was the case for other financial institutions – a matter, it argued, imperative for financial stability.However, the report accepted that the Gilt and Bund markets were unable to deal with demand, and that daily requirements would exceed the daily capacity of the UK Gilt repo market. Under current arrangements, PSAs – which encompass all categories of pension funds – would have to source cash for central clearing.Given that PSAs hold neither significant amounts of cash nor highly liquid assets, imposing such a requirement on them would require very far-reaching and costly changes to their business models, which could ultimately affect pensioners’ income, the document stated.It estimated that shifting to a system of posting cash collateral – one of the alternatives in the absence of using high-grade bonds – would reduce retirement income by 3.66% across member states, with the UK seeing a reduction of 3.1% and the Netherlands a loss of 3.2% over 40 years.Jonathan Hill, the financial services commissioner, said: “Today’s report sets out a number of potential ways to facilitate central clearing for pension funds. But none of them is straightforward, and it is sensible to take more time to develop a solution that is proportionate.”The European Market Infrastructure Regulation (EMIR), which entered into force on 16 August 2012, was designed to improve the stability of the over-the-counter (OTC) derivatives markets throughout the EU.The Regulation allowed for a three-year exemption for pension funds, until August 2015, with a further three-year exemption possible.Pension funds told IPE last year they were of the view the Commission would continue to offer an exemption for the industry.Last year, Hill also indicated that he would seek to propose a resolution mechanism for CCPs, which he saw as falling in the same ‘too big to fail’ category as banks.Read more about the delays in confirming a further pension fund exemption from clearinglast_img read more

Read more

On Air…Platin Gaming gains Extreme Live Gaming content

first_imgShare StumbleUpon Submit Platin Gaming appoints Matthijs Vogelenzang as Commercial lead July 17, 2018 Tipbet evolves cash out feature for new season July 30, 2018 Share Related Articles Betradar accredits Platin Gaming sports betting solutions February 27, 2017 Updating its client base, industry software provider Platin Gaming has announced that it has added Extreme Live Gaming provisions available to its inventory of partner content.Extreme Live Gaming is the Live Dealer specialist division of leading gambling technology firm Novomatic Group.Moving forward Malta-based Platin Gaming will now be supplied games for its online gaming and sports betting platform, which will be delivered from their new partner company’s London studios.Utilising optimised API’s and best in-class HD streaming technology, Extreme Live Gaming offers a diverse portfolio of live dealer games, including roulette, blackjack, baccarat and its own Golden Ball game.Extreme Live Gaming’s founder and CEO Darwyn Palenzuela: “The aim for us is always to provide our diverse and innovative games to the most dynamic and exciting providers. With its history of growth in Sports Betting and now Casinos, Platin Gaming is a tremendous partner for our business.”Dr. Ryan Mifsud at Platin Gaming, welcomed Extreme Live as new partners: “We take great care to provide the ideal mix and choice of games for our customers. The selection of Extreme Live Gaming as our Live Dealer supplier, with its unique player features, is designed to enhance further this optimal portfolio. We are looking forward to a long and mutually successful partnership.”last_img read more

Read more