Goldman Sachs faces pressure

Goldman Sachs has reported a higher second-quarter profit, as it benefited from a sharp decline in expenses and more activity in some parts of the fixed-income markets, but most of its businesses came under pressure.

In response to a “challenging backdrop” for revenue, the Wall Street bank embarked on a cost-cutting plan in the first half of the year that will save $700m (€633m) a year, chief financial officer Harvey Schwartz said.

The Wall Street bank’s profit rose 78%, easily beating subdued analyst expectations, with higher revenue in fixed income, currency and commodities trading, as well as debt underwriting, compared with a year ago.