Post Bear Stearns’s affair many in the financial world were Tom Toming were aghast when they saw better than expected results from banking majors Lehman Brothers and Goldman Sachs to which they had wriiten off in next firing line.
Lehman Brothers recorded just a 57% drop in first-quarter net income to USD 489 million, against USD 1.15 billion a year ago. The firm has, however, booked subprime-related writeoffs to the tune of USD 1.8 billion dollars.
Goldman Sachs maintained robust profitability in the face of a lending crunch, posting a first-quarter profit of USD 1.51 billion, that’s 53% from a year earlier. It also booked additional writeoffs worth USD 2 billion.
Posted by krishna Raj 