Instead of clarifying the change to a December ending accounting year (previously November ending), the media went overboard proclaiming how Goldman Sachs had blown away estimates.
To be fair to Goldman Sachs, their Q1 press release clearly shows a separate account for the ‘missing month’ of 2009 on page 10. This fact was jut totally ignored in the financial media!!
Q1 press release: http://www2.goldmansachs.com/our-firm/press/press-releases/current/pdfs/2009-q1-earnings.pdf
I’ve highlighted some relevant parts from the Q1 Press Release below:
Strangely enough, the media doesn’t seem to be interested in delving further into the ‘large’ compensation and benefits section in the Q1 results.
Adjusted for the month of December 2008, the results may not have been that spectacular.
Also the Goldman Sachs management doesn’t seem to want to discuss the AIG payout issue!!
Lastly, I hope that the Goldman results weren’t the result of ‘dangerous or uncalculated risk taking’.
We all know where that got us in 2008!
Goldman Sachs Buries Losses to Beat the ...
Goldman CFO Doesn't Get The Obsession With AIG
So What's the Story Morning Glory?
How to Puff Up Earnings, Goldman Sachs Style
Is Goldman Sachs really this stupid?