Goldman Sachs Profits Drop by 82 Percent

Just five days after settling U.S. regulators’ allegations upon fraud, Goldman Sachs Group Inc. reported their second-quarter profit to be dropped by a massive 82 percent. Since the fourth quarter of 2008,  profit and revenue were the lowest at this time.

Income dropped by 82 cents per share, or a gross of $613 million from $3.44 million, as reported in the statement published by Goldman Sachs.

While working upon restoring the firm’s reputation, Llyod Blankfein, company’s Chief executive officer, agreed to pay $550 million to settle the Securities and Exchange Commission’s accusations of fraud. However, GS’s biggest competitors JPMorgan Chase & Co. also reported decreased revenue during the second quarter of the year.

Michael Farr, President of the Farr, Miller, & Washington LLC, who sold Goldman Sachs shares when the SEC suit was filed is rethinking about buying it back. “You’ve got probably the greatest, most innovative investment bank in the world, leading the category, which looks cheap,” Michael Farr said.

Since yesterday, Goldman Sachs fell to $141.48 in NY trading from $145.68. GS’s stocks are down 14 percent this year as of yesterday while Standard & Poor 500 index is 2 percent low of Goldman Sachs.