Goldman Sachs loses $428 million in third quarter

Friday, October 14, 2011, Vol. 35, No. 41

NEW YORK (AP) — Goldman Sachs Group Inc. is reporting a loss of $428 million in the third quarter as its revenue from underwriting stocks and bonds plunged.

It's only the second time the New York investment bank has reported a quarterly loss since going public in 1999. The loss was worse than analysts expected.

Turbulent markets this summer led companies to hold off on new stock and bond offerings, leading to a 61 percent drop in Goldman's underwriting revenue.

The loss was equivalent to 84 cents per share.

The bank earned $1.7 billion, or $2.98 per share, in the same period a year ago.

Revenue slumped 60 percent to $3.6 billion, missing analysts' estimates.

The company's stock rose 1.5 percent to $98.39 in pre-market trading.