A video skit shown at a recent Goldman Sachs holiday party for its equity division depicted a junior fixed-income professional being promoted to head equity trading, in an acknowledgement of how Goldman's bond department carried fourth-quarter earnings. An official at the firm said while the skit was humorous and elicited laughs, he declined to reveal further details because it poked fun at a less profitable business line. "It's sensitive," he added.
The numbers speak for themselves: Goldman's overall fourth-quarter profit rose 23%, fueled by fixed-income trading, commodities trading and investment banking. Net revenue in trading and principal investments for fixed income, currency and commodities was $1.46 billion, up 28% from the fourth quarter the previous year. Meanwhile, net revenue for equity trading was $1.03 billion down 12% from the fourth quarter the previous year.
Thomas Tuft, chairman of equity capital markets, did not return calls and Michael DuVally, spokesman at Goldman, declined comment.