Just months after paying back billions in bailout funds, Goldman Sachs reported a profit of $3.19 billionfor the third quarter, or $5.25 diluted earnings per common share, exceeding analyst expectations by about $1 a share. Goldman’s earnings were up 270 percent for the quarter compared to the same period last year.
It was only about 12 months ago that the 140-year-old firm averted collapse by accepting an estimated $70 billion, including $10 billion in TARP; $11 billion from the Federal Reserve; $30 billion from the FDIC; and $13 billion from AIG, as reported by The Huffington Post.
According to Huffington, Goldman Sachs was able to use this money to buy billions in distressed assets around the world at record low prices.
On the company’s Q3 conference call Thursday, David Viniar, CFO, said the firm is looking aggressively at distressed investing, but that holders of distressed assets have yet to loosen their grip.
“We are starting to see a little more than a trickle, but not much more of distressed opportunities,” Viniar said.
