Profits and revenue soar at Goldman Sachs

NEW YORK, April 20 (UPI) -- Profits at Goldman Sachs, the New York financial firm charged with fraud, soared in the first quarter, climbing 91 percent from a year ago, the bank said.

With revenue reaching $12.8 billion, up 36 percent from the first quarter of 2009, profits surged from $1.81 billion to $3.5 billion.

The firm's quarterly statement said earnings per common share came to $5.59, up from $3.39 for the first quarter last year.

The fraud controversy erupted Friday, when the Securities and Exchange Commission charged the bank with secretly selecting mortgage-backed investments designed to fail as they were chosen by hedge fund manager John Paulson, who was betting heavily against the housing market.

Chairman and Chief Executive Officer Lloyd Blankfein said in a statement: "In light of recent events involving the firm, we appreciate the support of our clients and shareholders and the dedication ... of our people."

That dedication will be well paid. Goldman set aside 43 percent of its revenue or $5.5 billion in the first quarter for salaries and benefits.

Operating expenses were up 12 percent from a year ago during the quarter, rising to $7.6 billion, the bank said.