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		</div><p>Goldman Sachs said its fourth-quarter profits dropped by 24% from a year earlier, as the bank had to set aside money to cover its looming settlement with US authorities over its role in a Malaysian sovereign wealth fund scandal.</p>
<p>The investment bank said it earned a profit of 1.72 billion dollars (£1.32 billion) in the quarter, or 4.69 dollars (£3.60) a share, down from a profit of 2.32 billion dollars (£1.78 billion), or 6.11 dollars (£4.69) per share, a year earlier.</p>
<p>The results missed analysts’ expectations for earnings of 5.47 dollars a share.</p>
<p>Despite having a strong quarter in trading, Goldman’s results were marred by significantly higher expenses.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
<p lang="en" dir="ltr">Our Chairman and CEO David Solomon comments on <a href="https://twitter.com/search?q=%24GS&;src=ctag&;ref_src=twsrc%5Etfw">$GS</a>&#39; full year and 4Q 2019 earnings results: <a href="https://t.co/tySmAIm1Yw">https://t.co/tySmAIm1Yw</a> <a href="https://t.co/D47OUijPRK">pic.twitter.com/D47OUijPRK</a></p>
<p>&mdash; Goldman Sachs (@GoldmanSachs) <a href="https://twitter.com/GoldmanSachs/status/1217424950765793281?ref_src=twsrc%5Etfw">January 15, 2020</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>The bank set aside roughly 500 million dollars (£383 million) more to cover its legal expenses in the quarter.</p>
<p>The bank is currently negotiating a settlement over its involvement in 1MDB, a Malaysian government-sponsored investment fund that became a conduit for high-level Malaysian officials to launder money out of the country.</p>
<p>Malaysia’s prime minister was arrested as part of the scandal, and another official is a fugitive and his whereabouts are unknown.</p>
<p>Two former Goldman Sachs bankers have been charged for their role in helping 1MDB launder money.</p>
<p>The bank also had a big jump in its compensation expenses, setting aside 3.05 billion dollars (£2.34 billion) in the quarter to pay its well compensated employees, compared with 1.86 billion dollars (£1.42 billion) a year earlier.</p>
<p>Many of Goldman’s employees earn the bulk of their pay in large year-end bonuses.</p>
<p>For the full year, however, compensation and benefits costs at the bank were basically flat – reflecting the difficult year Goldman had in many of its businesses.</p>
<p>The expenses overshadowed what was a pretty decent quarter for Goldman, reflecting financial markets’ overall performance in the last three months of the year.</p>
<p>Trading revenues were up 33% from a year earlier, led by a massive jump in revenue from trading bonds, commodities and currencies.</p>
<p>For the full year, Goldman had a profit of 7.9 billion dollars (£6.06 billion), down from 9.86 billion dollars (£7.56 billion) in the same period a year ago.</p>
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