 Goldman was able to offset its sub-prime losses |
Investment bank Goldman Sachs has seen its latest profits soar 79%, helped by it betting correctly that the value of mortgage bonds would go down. While the firm's losses caused by the sub-prime crisis were $1.5bn (�747m), it said this was "more than offset" by hedging that mortgage bonds would fall.
As a result, the firm's profits for the three months to 31 August rose to $2.85bn from $1.58bn a year earlier.
It was also boosted by the $1bn sale of its stake in Horizon Wind Energy.
'Stunningly good'
Goldman's revenues for its third quarter rose 63% to $12.3bn, again beating market expectations.
Analyst Adam Compton of RCM Global Investors said Goldman's results were "stunningly good".
Other analysts said Goldman was helped by the diversity of its investment portfolio.
"It demonstrates how diverse Goldman is both in terms of
its product range, as well as its geographic diversity," said
Camilla Petersen, an analyst at Atlantic Equities in London.
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