Goldman Sachs sees profits fall

US investment bank Goldman Sachs has reported a 70% fall in third-quarter earnings as financial markets continue to be hit by the credit crunch.

The Wall Street giant revealed net income of $845m (£473m), down from $2.85bn a year before. Net revenue fell to $6.04bn from $12.3bn.

Boss Lloyd Blankfein said Goldman had seen a decrease in client activity "and declining asset valuations".

The results were slightly better than analysts had expected.

Goldman Sachs saw its shares close $2.49 lower to $133.01.

While its business has slowed, Goldman has avoided the massive losses the credit crisis that brought Lehman Brothers to its knees.

Unlike many investment banks, Goldman bet correctly that the value of mortgage bonds would go down, helping it avoid the fallout from the collapse in the US sub-prime mortgage market.

However, the credit crunch triggered by the sub-prime meltdown has resulted in fewer of the buyouts and share flotations that are the mainstay of investment banking.

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