Goldman Sachs hit by troubles, but the general forecast remains positive
Goldman Sachs had to adjust the financial results for the second quarter after closing a billion-dollar arrangement with Malaysia two weeks ago. The bank increased its problematic reserves by $ 2 billion on Friday, reducing the company’s previously announced profits by 85%.
The net result now stands at $ 373 million, the lowest quarterly profit since 2017. Goldman Sachs concluded a settlement deal with Malaysia of $ 2.5 billion, after which the Asian country falls all charges against the US bank in a massive fraud case. The bank also gave the guarantee to pay back $ 1.4 billion to the country.
The Financial Group previously made major deals for the Malaysian state fund 1MDB, which is at the heart of a major scandal in Malaysia. A former prime minister of the country, Najib Razak, would have had large sums of money thrown away through the fund.
The previously reported quarterly results of Goldman Sachs were positive. For example, revenues increased considerably, with the Financial Group benefiting from increased trading activity on the financial markets. As they showed a remarkable recovery after the coronadip in March, the business bank’s demand for trading services also increased sharply. The turnover was 13.3 billion dollars, a 41 percent increase over the same period last year and the second highest quarterly turnover of Goldman Sachs ever.