Goldman Sachs’ Q1 profit plunge is raising fears of serious problems with not just the banking giants, but the entire industry.
Five of the US's six biggest banks slashed Q1 revenues, down $10B to a total of $97B, with Goldman freefalling at a 40% dive, as post-crisis regulations made banks reliant on investors who back off during market slumps—like the turmoil in Q1 '16.
The revenue drops have investors raising concerns over the business model, particularly at a time when negative interest rates are weighing heavy on lending margins.
“When does Goldman say the time has come for transformational change, that we must do something radically different, because we are getting nowhere?” analyst Richard Bove of Rafferty Capital asked. [WSJ]
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