Dealmaking on Wall Street has dried up, and it’s costing big banks a fortune. Kim Kardashian could fix that.
What’s happening: Goldman Sachs (GS) reported on Wednesday that its investment banking revenue declined by 20% in the second quarter of 2023. Overall, profit in the quarter fell by 58% from a year ago, to $1.2 billion.
“Activity levels in many areas of investment banking hover near decade-long lows, and clients largely maintained a ‘risk off’ posture over the course of the quarter,” said Goldman’s CEO David Solomon on the bank’s earnings call. That means clients are worried about making bets in an uncertain economic environment.
