01 Jan 2009, David Benyon, Operational Risk & Regulation
NEW YORK - US bank Goldman Sachs has sustained fourth-quarter losses totalling $2.12 billion.
The losses, announced December 16, were less than expected and provoked optimism in trading in London and on the New York Stock Exchange, where Goldman Sachs shares rose by 11%, along with those of embattled rival JP Morgan Chase on the Dow Jones Industrial Average.
The quarterly loss had been largely predicted by analysts, who said the firm would be forced to accept write-downs on real estate and leveraged loans, in addition to its holdings in Commercial Bank of China, which fell 28% during Q4. It is Goldman's first quarterly loss since the firm went public in 1999.