Goldman Sachs Smashes Earnings and Revenue Expectations

Goldman Sachs reported a strong fourth quarter earnings report, with a 51% increase in profit to over $2 billion, driven by impressive results in asset and wealth management divisions, surpassing Wall Street expectations. The gains did not come from investment banking and trading, which saw declines, but rather from a focus on simplifying strategy and investing in asset and wealth management. The company also faced costs from dissolving its consumer arm and a one-time fee from the FDIC. Meanwhile, Morgan Stanley reported a 32% drop in quarterly profit, leading to a 3.8% drop in its shares.