Goldman Sachs and Lehman Brothers on Tuesday both reported smaller-than-expected Q1 profit declines, easing fears that the liquidity crisis that sank Bear Stearns could spread. Beyond the results themselves, investors cheered news from both banks about their liquidity positions and the absence of shocks on leveraged loan or mortgage-related writedowns. Shares in Lehman closed up 46%, more than wiping out Monday’s loss, while Goldman shares jumped 16%. Lehman earned $489m in the quarter, a 57% fall from last year, while Goldman’s earnings fell 53%, less than many analysts had expected on Q1 revenue of $8.34bn. The results drove financial shares up and helped lift the broader market.

This entry was posted by Gwen Robinson on Wednesday, March 19th, 2008 at 5:50 and is filed under Capital markets. Tagged with goldman sachs, Lehman Brothers. Edit this entry.