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Goldman Sachs Boasts High Earnings

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When Bear Stearns was dying (and even just before) many wondered what would happen to its successful prime brokerage business, which is engaged in the nerdy-but-necessary business of clearing trades for hedge funds and lending them money.

Well, Goldman Sachs Group reported earnings today and its securities-services segment posted a 30% increase in revenue on strength in the prime-brokerage business. The outrageously good performance is another suggestion that many of Bear's customers defected to Goldman. And, given that hedge funds are making no secret of looking for banks that can give them the most stability, it won't be surprising if they pick up more.

Read the whole story at Wall Street Journal