The stock dropped roughly 2% intraday after initially plunging more than 4% at the open — even as the bank reported earnings and revenue that topped expectations.

Investors also weighed the potential impact of the Iran conflict on dealmaking and market activity.

Goldman posted net income of $5.63 billion on revenue of $17.23 billion for the quarter, with earnings per share of $17.55 — topping analyst estimates of $16.49 per share on revenue of about $16.97 billion.

Goldman Sachs boss David Solomon warned that geopolitical tensions could weigh on dealmaking and market activity if they persist. REUTERS

But the strong headline results were overshadowed by a sharp miss in a key business line: fixed-income trading.

Revenue from fixed income, currencies and commodities — known as FICC — came in at roughly $4 billion, falling short of expectations by as much as $900 million, according to estimates cited by analysts.

The shortfall in FICC, a core driver of institutional trading revenue, weighed heavily on investor sentiment and sparked concerns about whether trading conditions are beginning to soften.

Weakness wasn’t limited to trading. The firm’s asset and wealth management division generated $4.08 billion in revenue, falling roughly $140 million short of analyst expectations.

At the same time, Goldman reported a larger-than-expected provision for credit losses, booking about $315 million — more than double the roughly $150 million analysts had anticipated.

Goldman Sachs shares fell Monday despite strong earnings, as investors focused on weak spots in trading and rising credit costs. Google Market

The higher provision raised questions about potential stress in the bank’s lending portfolio and exposure to private credit markets.

It was the bank’s largest increase in loan loss provisions since 2020, Wells Fargo analyst Mike Mayo said in a note cited by CNBC.

Nonetheless, the company offered to a positive take on the first-quarter results.

“Goldman Sachs delivered very strong performance for our shareholders this quarter, even as market conditions became more volatile,” CEO David Solomon said.

“Our clients continue to depend on us for high quality execution and insights amid the broader uncertainty, and we remain confident in how we’ve positioned our businesses.”

Speaking on a conference call later Monday, Solomon said dealmaking activity has remained resilient but warned he is closely tracking developments in Iran and the broader Middle East region.

“If the resolution of the conflict drags, that probably will be a headwind in some of these areas, particularly inflation trends as we get further into the second and the third quarter,” Solomon said. “So we’ll have to watch that.”

Shares of Goldman Sachs declined after a key trading division underperformed expectations. REUTERS

Solomon also struck an optimistic tone on dealmaking, saying executives he has spoken with “believe they have an opportunity to drive scale and consolidation” that wasn’t possible under the Biden administration.

Some analysts warned that the outlook for dealmaking remains uncertain.

“The absence of a material increase in [investment banking] activity over a sustained period and/or a cool-down in market performance could lead to disappointment and a sharp correction,” Saul Martinez, head of US financials research at HSBC, told the Wall Street Journal.

Investors appeared to look past the firm’s strong performance in other areas.

Equities trading revenue surged to a record level during the quarter, while investment banking fees rebounded sharply amid a pickup in dealmaking activity.

Shares of JPMorgan Chase rose about 0.8%, while Bank of America gained roughly 0.7%, reflecting a modestly positive tone across large-cap lenders.

The broader KBW Bank Index was little changed, pointing to a flat-to-slightly-positive session for the sector, while the Invesco KBW Bank ETF hovered in the mid-$80s range.

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House Oversight Committee Chairman James Comer (R-Ky.) wrote in a letter reviewed by The Post that the panel believes Ruemmler holds key insights for its wide-ranging Epstein investigation.

She was set to appear for the congressional grilling on April 21. It would come after high-profile appearances from Bill and Hillary Clinton last week before the committee.

Ruemmler is set to appear for the congressional grilling on April 21. It comes after a high-profile appearance from Bill and Hillary Clinton last week before the committee. NBCU Photo Bank/NBCUniversal via Getty Images

The existence of the letter was first reported by the Wall Street Journal.

“Ms. Ruemmler welcomes the opportunity to appear before the Committee. At the time she interacted with Jeffrey Epstein, she was a practicing criminal defense attorney and shared a client with him,” a rep for the top lawyer told The Post. “She has done nothing wrong and had no knowledge of any ongoing criminal activity on his part.”

A Goldman Sachs spokesperson declined to comment.

Ruemmler, a former Obama White House counsel, announced last month that she would step down from Goldman later this year amid mounting revelations about her Epstein connections.

She maintains the relationship was purely professional — sharing a client and occasionally advising him — but that she regrets knowing the financier who died in jail in 2019 while awaiting a sex trafficking trial.

Ruemmler’s name surfaced in reporting by the Journal as one of Epstein’s closest post-conviction regulars, despite his 2008 guilty plea to soliciting a minor for prostitution.

Epstein listed her as backup executor in a 2019 draft of a will, called her the night of his arrest, and exchanged chatty emails laced with luxury gifts — tens of thousands of dollars in wine, handbags, and more.

Jeffrey Epstein died by suicide in jail as he awaited trial on charges of sex trafficking minors Courtesy of Ross Catanzarite

She dubbed the creep “Uncle Jeffrey” and “sweetie,” describing him as “another older brother” in one missive.

Ruemmler joined Goldman in 2020 after disclosing the connection to executives, who said they conducted due diligence and were “satisfied.”

CEO David Solomon stood by her, calling her an “excellent lawyer” amid a media firestorm that was sparked by a Justice Department document dump regarding the dead pedophile.

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But the continued drip of negative stories fueled unease among the financial giant’s partners, with her role seen as a distraction, according to Bloomberg.

“I made the determination that the media attention on me, relating to my prior work as a defence attorney, was becoming a distraction,” Ruemmler said of her planned June 30 exit to the Financial Times.

Her resignation marks high-profile Wall Street fallout from Epstein’s relationships with the elite of global finance, politics, and business.

Former President Bill Clinton appeared alongside his wife, ex-Secretary of State Hillary Clinton, before the Oversight Committee. via REUTERS

Britain’s Peter Mandelson lost his plum role as the UK ambassador to the United States after fresh information emerged about his relationship with the shady financier.

Ruemmler’s testimony could shed light on his access to power players on both sides of the Atlantic, after the pair was found to be sharing their thoughts on media strategy and career advice in their lengthy correspondence.

Epstein’s 2019 death — ruled a suicide but dogged by conspiracy theories — followed his arrest on charges of running a sex-trafficking ring involving minors. His British madam, socialite Ghislaine Maxwell, is currently serving a 20-year term on similar charges.

Ruemmler’s White House stint under Obama burnished her elite resume, leading to a stint at the prestigious law firm Latham & Watkins before she joined Goldman.

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Ruemmler, who dealt with Epstein through one of her legal clients, is mentioned thousands of times in the Epstein files. But that one crude remark by Epstein, and her bland response made her situation untenable even if people close to her tell me it was intended to deflect from his rudeness.

“That email did it,” according to one person close to Ruemmler who was in contact with her up until the time of her resignation.

Kathy Ruemmler’s resignation was spurred by an email about Jeffrey Epstein making a crude remark about his penis, alluding to masturbation, and Ruemmler’s bland response. NBCU Photo Bank/NBCUniversal via Getty Images

“It was just too much to explain away to friends and others even if there was an innocent explanation. She was tired. She wanted it all to end.”

The message dates to 2015, when Ruemmler, a former prosecutor, was a top lawyer at the firm Latham & Watkins, where she landed after serving as White House counsel for the Obama Administration.

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Unlike many of the people in Epstein’s now infamous circle of friends, Ruemmler stumbled into her relationship with the convicted perv not because she needed something, but through her work for another client, the Swiss bank Edmond de Rothschild Group.

The understanding was that Epstein, even though he’d plead guilty in 2008 for soliciting sex from an underaged prostitute, would serve as a gatekeeper for the legal work Ruemmler was handling.

Ruemmler was mentioned thousands of times in the Epstein Files

What began as a professional relationship soon evolved into something more friendly.

In emails, the two are seen talking about trips to his infamous island in the Caribbean (Ruemmler’s reps say she never went) and public relations advice to Epstein. She refers to Epstein as “uncle Jeffrey” after receiving boots courtesy of the creep.

Ruemmler, shown in 2014, served as White House counsel for the Obama Administration. AFP via Getty Images

When Epstein was arrested a second time in 2019, just before he was found dead in his jail cell from an apparent suicide, one of his first calls was to Ruemmler (her reps say she never engaged him as a client in any capacity).

It’s all very embarrassing for Ruemmler and Goldman. Yet for months Goldman Sachs stood by her, believing that while her dealings with Epstein might look bad, a fair reading showed she was dealing with someone on behalf of a client.

Ruemmler, meanwhile, carried on with her duties as general counsel of one of the world’s most prestigious firms seemingly without a hitch.

Privately, however, she was reeling. Goldman’s corporate culture is among the most cut-throat on Wall Street. Colleagues leaked stories that there were plans to move her out of the job, which the firm officially denied.

Goldman Sachs and CEO David Solomon supported Ruemmler. AFP via Getty Images

She found herself constantly explaining to friends and others the nuances of her exchanges with Epstein, people with knowledge of the matter say.

She is a criminal lawyer by training, but she said she was fooled into believing that Epstein had cleaned up his act; his single count of child prostitution a mistake with someone he believed was legal.

Then came the birthday email, and Ruemmler’s seemingly lack of outrage over its content.

The exchange starts off innocently enough, when Ruemmler writes to Epstein wishing him a “Happy Birthday! I hope you enjoy the day with your one true love. :-)”

Goldman’s corporate culture is among the most cut-throat on Wall Street. Reuters

Epstein responds: “they say that men usually give a name to their penis, as it would be inappropriate to make love to a total stranger.”

Ruemmler replies that it’s “Hard to believe that there is still an open question about whether men are yhe inferior gender.”

According to one person close to Ruemmler, the notion that she was casually discussing the penis of a convicted sexual predator was a bridge too far.

“It’s so sad what happened to her because when all is said and done she didn’t do anything wrong but talk to this guy,” said a person close to her. “And that one email just put her over the edge.”

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The 63-year-old’s pay packet is up 21% from $38 million in 2024. He was paid $31 ​million in 2023.

Solomon earned a base salary in 2025 of $2 ‌million and $45 million in annual variable compensation, Goldman said in a regulatory filing.

It means he bests JPMorgan CEO Jamie Dimon, who picked up a compensation package worth $43 million for 2025, a 10.3% increase from the previous year.

Solomon’s pay for 2025 of $47 million was released by Goldman in a regulatory filing on Friday. REUTERS

Solomon and his right-hand man, Goldman president and chief operating officer John Waldron, each agreed to $80 million stock-based retention bonuses last year to keep them at 200 West St., Goldman’s main HQ, until January 2030.

Waldron, 55, is widely tipped to take over from Solomon when he eventually decides to call it a day as the bank’s chief executive.

The announcement follows blockbuster Q4 results, boosted by a revival in M&A activity, announced at 200 West Street last week. Christopher Sadowski

A Goldman spokesperson directed The Post to statements made by the bank’s compensation committee.

Executives said they had considered several factors, but stressed that Solomon had overseen a “strong performance in support of our clients across global banking & markets and asset & wealth management.”

The Wall Street veteran also saw the price of Goldman shares increase by just over 53% in 2025.

Solomon announced financial results last week for the fourth quarter of last year that beat analysts’ expectations.

He said that he was upbeat about the prospects for M&A and IPOs this coming year, pointing to a more favorable regulatory climate under the Trump administration.

“CEOs definitely believe that ‘The Art of the Deal’ – scaled consolidation – is possible now,” the 63-year-old said on Jan. 15 in an apparent reference to President Trump’s book on business negotiations.

He joined the bank as a partner in 1999 after leaving Bear Stearns and rose through the ranks ​to eventually succeed Lloyd Blankfein, who ‍led Goldman through the 2008 financial crisis and its aftermath.

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Sources close to Sobelman, an alum of Colgate University and Brooklyn Law School, said he is to join the David Solomon-led lender “imminently.”

“Robert is leaving and going to run investigations at Goldman,” said one senior source briefed on the matter. “It is part of a recent exodus in the Southern District of New York.”

Sobelman, seen here pointing to disgraced lawyer Michael Avenatti in a courtroom sketch, is understood to be joining Goldman Sachs “imminently.” AP

Sobelman was not immediately available for comment. A Goldman Sachs spokesperson declined to comment.

The 39-year-old US attorney is currently the chief of the public corruption unit at the Southern District of New York in Manhattan. He’s the latest in a string of high-profile exits from 26 Federal Plaza after the Trump administration ordered that the case against Adams be dropped.

Those included former interim Manhattan US attorney Danielle Sassoon, a conservative Trump appointee who in February had refused to comply with Trump’s order to drop the Adams case.

At least 10 other federal prosecutors in Manhattan left this spring following the fracas.

Sobelman was one of the hotshot corruption lawyers who worked on the charges against outgoing mayor Eric Adams before they were ultimately dismissed by a federal judge. J.C. Rice

Sobelman’s victories in the US Southern District included helping to jail disgraced New Jersey Sen. Bob Menendez for bribery. Brigitte Stelzer

Jay Clayton, who had served as the head of the Securities and Exchange Commission during Trump’s first term in the White House, became the US Attorney for the Southern District of New York in August after serving on an interim basis since April. He replaced Damian Williams, a Joe Biden appointee.

Sobelman’s victories in the US Southern District included helping to jail disgraced New Jersey Sen. Bob Menendez for bribery. In 2022, he led the case against Michael Avenatti, the former lawyer for porn star Stormy Daniels, who was jailed for attempting to extort Nike for $25 million.

How The Post reported Avenatti’s 2022 jailing following the Sobelman prosecution of the disgraced attorney.

Avenatti, who was jailed on an initial 14-year sentence that was later reduced to eight, was also accused of stealing hundreds of thousands of dollars from the porn star Stormy Daniels, who claimed that she had sex with President Trump.

Sobelman also helped prosecute the case against Steve Bannon, Trump’s one-time chief strategist, over fraud allegations that overshadowed an online crowdfunding campaign known as “We Build the Wall”.

Bannon eventually pleaded guilty in February to one count of scheme to defraud, a low-level felony, and avoided jail time.

Sobelman’s close friend David Kusnetz recently told Colgate University’s magazine that Sobelman’s “successful prosecutions of powerful political figures are a testament to how he always approached challenges at Colgate — with integrity and grit.”

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Major US stock indexes have notched record high after record high this year on the promise of artificial intelligence, but there’s a good chance that not all of those investments will deliver big returns, Solomon said during Italian Tech Week in Turin, Italy, on Friday.

He noted that the internet craze of the late 1990s and early 2000s drew a frenzy of investment in tech companies. But it was followed by a dramatic collapse in the shares of many of those firms – known as the “dot-com bubble”.

Goldman Sachs CEO David Solomon warned stock markets are due a “drawdown” in the next year or two. AP

“You’re going to see a similar phenomenon here,” Solomon said. “I wouldn’t be surprised if in the next 12 to 24 months, we see a drawdown with respect to equity markets.”

“I think that there will be a lot of capital that’s deployed that will turn out to not deliver returns, and when that happens, people won’t feel good.”

President Trump earlier this year unveiled a collaboration between top tech firms like SoftBank, OpenAI and Oracle that intends to invest $500 billion over the next four years into building new AI infrastructure across the country.

AI optimism has helped push Wall Street indexes higher and higher, even after fears around Trump’s tariffs tanked stocks earlier this year.

That’s led some leaders in the financial and tech industries to warn of a potential “bubble burst” down the line.

“I’m not going to use the word bubble, because I don’t know, I don’t know what the path will be, but I do know people are out on the risk curve because they’re excited,” Solomon said.

“And when [investors are] excited, they tend to think about the good things that can go right, and they diminish the things you should be skeptical about that can go wrong.”

Pricey data center deals have taken center stage as companies try to build out the energy infrastructure needed to power this new tech. AFP via Getty Images

Investors have poured capital into stocks like Microsoft, Alphabet, Palantir and Nvidia, as tech firms announce multi-billion dollar investments in AI.

Pricey data center deals have taken center stage as companies try to build out the energy infrastructure needed to power this new tech.

“There will be a reset, there will be a check at some point, there will be a drawdown. The extent of that will depend on how long this [bull run] goes,” he added.

“Markets run in cycles, and whenever we’ve historically had a significant acceleration in a new technology that creates a lot of capital formation, and therefore lots of interesting new companies around it, you generally see the market run ahead of the potential,” Solomon aded.

AI optimism has helped push Wall Street indexes higher and higher. Getty Images

“There are going to be winners and losers.”

Solomon isn’t the only one pointing to red flags when it comes to massive AI investments.

At the same event on Friday, Amazon founder Jeff Bezos said AI is currently in an “industrial bubble.”

However, Solomon also expressed excitement about the future of artificial intelligence.

“I sleep very well. I’m not going to bed every night worried about what will happen next,” Solomon said. 

“Generally speaking, I think what’s super exciting is the technology is expanding, new companies are being formed, and the potential of this technology deployed into the enterprise can be very, very powerful. So, it’s an exciting time.”

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