Investment giant Goldman Sachs today reported surging first quarter profits of $3.46 billion, doubling its profit of one year ago, even as it faces US government probe into its role in the US financial meltdown.
Net earnings were up a massive 91% compared to the same time last year, blowing Wall Street expectations out of the water.
'Our performance in the first quarter reflects more signs of growth across the economy and the strength of our client franchise,' Goldman chief executive Lloyd Blankfein said.
The results came four days after the New York-based bank was accused of fraud by the US Securities and Exchange Commission in the structuring and marketing of a debt product tied to US sub-prime mortgages.
Goldman emerged as Wall Street's most influential bank after the financial crisis, but it has faced a backlash over its pay and business practices.
Earlier, Britain's financial regulator said it had also started a formal investigation into Goldman Sachs.
The Financial Services Authority (FSA) said it would be 'liaising closely' with the US Securities and Exchange Commission in its probe.
The SEC has accused Goldman of hiding from investors the fact that US hedge fund Paulson & Co was betting against a sub-prime mortgage product that it helped create. Goldman has denied the charges.
The FSA's move draws it into what promises to be one of the biggest legal rows in recent banking history, and both the SEC and Goldman are expected to come out fighting.
In documents submitted to the SEC last year, the bank said the regulator was using 'the benefit of perfect hindsight' about the magnitude of the sub-prime housing crisis.
