Goldman Sachs has reported that its third-quarter earnings plunged 70% as a severe market slump affected its banking and trading results.
The largest US investment bank reported net profits of $845m for the quarter ended August 29, down from $2.85 billion a year earlier. Net revenue fell by half to $6.04 billion.
'This was a challenging quarter as we saw a marked decrease in client activity and declining asset valuations,' Lloyd Blankfein, Goldman's chief executive, said in a statement.
The results come as the year-long credit crunch gains steam. Six months after Bear Stearns collapsed and was acquired by JPMorgan Chase, Lehman Brothers filed for bankruptcy protection on Monday while Merrill Lynch was bought by Bank of America.
