Goldman Profit Drops on Fixed Income, Surge in Legal Costs

Goldman Sachs Group Inc.’s profit tumbled 49 percent as fixed-income trading revenue dropped more than its rivals and litigation expenses rose fivefold.

Second-quarter net income fell to $1.05 billion, or $1.98 a share, from $2.04 billion, or $4.10, a year earlier, the New York-based company said Thursday in a statement. Excluding the $1.45 billion legal cost and an accounting adjustment, earnings were $4.49 a share, beating the $3.96 average estimate of analysts in a Bloomberg survey.