Super-Secretive Goldman Business Gets So Small You Can Barely See It

Lloyd Blankfein and The Incredible Shrinking Unit.
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In a bad quarter for The Elect, Goldman Sachs’ “murky” Investment & Lending unit’s revenue fell 95%.

I&L’s equity securities business? Well, it managed to do even worse.

A year ago, the equity securities business brought in $1.16 billion in net revenue for Goldman. Last quarter it made almost $1 billion.

Goldman reported this morning that the unit’s revenue fell 100%. Revenue fell to zero. Zilch. Nada.

Perhaps Goldman would like to do a little bit of explaining? After all, it did create the I&L business five years ago to “improve understanding of the firm.”

Tuesday’s results did little to bolster confidence in the unit’s transparency. On the earnings calls, Mr. Schwartz provided few details on the specific investments that led to the revenue drop.

Still, a round of applause for all of the big banks for the first quarter. Sure, all of them made lessmoney in the first three months of 2016 than they did in the first three months of 2015—but they came by that weaker profit honestly, the old-fashioned way.

For all the pain felt by big banks, there were no big trading missteps, no multibillion-dollar losses, no need for executives to reassure panicky investors about having sufficient liquidity or tamp down questions about solvency.

The Murky Goldman Unit Where Revenue Fell 95% [WSJ]
Goldman Is Hurt by Opaque Holdings [WSJ]
The Very Good News In Goldman Sachs’s Bad Earnings Report [WSJ]

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