Finance
Goldman Profit Tumbles on Real Estate Hits, Dealmaking Slump
- Firm’s return on equity falls to 4%, worst among top US banks
- Investment-banking fees miss estimates as merger fees slide
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Goldman Sachs Group Inc.’s profit plunged as the Wall Street giant notched one of its weakest quarters under Chief Executive Officer David Solomon.
Second-quarter earnings fell 58% on an investment-banking slump, real estate markdowns and a goodwill writedown in the consumer business, which houses the GreenSky lending business. Return on equity, a key measure of profitability, slid to 4% — the worst among the top US banks.