Goldman Sachs Group has reported lower second quarter earnings, hurt by its settlement of US Securities and Exchange Commission fraud charges and the UK tax on bank executive bonuses.
Goldman, which resolved a major headache last week by paying $550m to settle the SEC case, said earnings applicable to common shareholders fell to $453m, or 78 cents a share.
A year earlier, the bank reported earnings to common shareholders of $2.7 billion, or $4.93 a share.
Weakness in its trading and investment banking divisions also weighed on earnings.
The fraud charges stemmed from Goldman's marketing and packaging of the Abacus collateralized debt obligation. The bank agreed to settle the case last Thursday.
Goldman said earnings were impacted by a $600m expense related to the UK tax.
