Investment Banking

Goldman shows banks' big problem: Revenue

Plunge in first-quarter revenues prompts questions over whether top investment banks can generate the income they used to

Wall Street's big banks endured a difficult first quarter of 2016
Wall Street's big banks endured a difficult first quarter of 2016 Photo: iStockPhoto

Goldman Sachs reported sharply weaker first-quarter results, raising investor fears that there are fundamental problems in the Wall Street money-making machine.

Profits for the biggest US banks were down. But five of the six also posted shrinking revenue - led by a 40% drop at Goldman - raising tough questions from analysts and investors about the road ahead for the firms and their ability to generate the level of business they have in the past.

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