Goldman profit hit by weaker trading, rising expenses; shares tumble

Bank earnings in the fourth quarter have taken a hit from lower trading volumes as the Federal Reserve slowed the pace of its asset purchases after 18 months of pumping liquidity into capital markets to ease the impact of the COVID-19 pandemic.

NEW YORK: Shares in Goldman Sachs Group fell as much as 8% Tuesday after Wall Street's premier investment bank missed quarterly profit expectations, hampered by weaker trading revenues and rising expenses.

The share decline put Goldman on course for its worst single-day showing since June 2020, shedding about $10 billion off its market valuation since Friday's close, although it recovered to trade down 6.5% towards the close.