The Goldman Sachs Group Inc. is expected to record a loss as large as $2 billion for its fiscal fourth quarter ended Nov. 28, according to a report in The Wall Street Journal that cited industry insiders.
The loss, which would be the company's first since it went public in 1999, is projected to be $5 per share, according to the insiders, and is more than five times larger than the consensus for the New York-based firm, which faces write-downs in areas ranging from private equity to commercial real estate.
“The last two weeks have been nothing short of horrible, with asset prices coming under ever more pressure than before,” said Susan Katzke, an analyst at Credit Suisse Group of Zurich, Switzerland.
Ms. Katzke cut her Goldman estimate to a fiscal fourth-quarter loss of $4 a share from a projected a profit of $2.47 a share.
In an effort to strengthen their balance sheets, Goldman and Morgan Stanley, both of New York, applied to become bank holding companies in September.
Goldman shares were off 58 cents, or 0.9%, to $65.18 in Tuesday morning trading.
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