Client Activity Across All of Goldman's Business Declined

Goldman Sachs GS again ranked first in investment banking. Despite the $1.15 billion of additional expenses related to the U.K. bank payroll tax and the SEC settlement, book value per common share and tangible book value per common share each increased 1% during the quarter to $123.73 and $112.82, respectively. Goldman continues to manage its capital conservatively. The firm's Tier 1 capital ratio under Basel I was 15.2% as of June 30, 2010. The firm's Tier 1 common ratio under Basel I was 12.5% as of June 30, 2010. The firm's global core excess liquidity averaged $163 billion for the second quarter of 2010 and was $168 billion as of June 30, 2010. On July 15, 2010, the firm announced a settlement, subject to court approval, to resolve the SEC's pending case against Goldman, Sachs & Co., including the payment of $550 million. "The market environment became more difficult during the second quarter and, as a result, client activity across our businesses declined," said Lloyd C. Blankfein, Chairman and Chief Executive Officer. "Looking ahead, we remain focused on helping our clients to raise capital, manage risk and invest for the future, which are all important to economic growth."