Goldman Sachs to report 'only second ever quarterly loss'

Investment bank Goldman Sachs is expected to report only its second ever quarterly loss when it unveils its numbers next week, Credit Suisse analysts have warned.

According to a report in the Telegraph, Credit Suisse has forecast a loss of $392m for Goldmans in the three months to the end of September. Others are also downbeat, with Barclays predicting Goldmans will see losses in the region of $180m.

A quarterly loss for the Wall Street behemoth would be the first since 2008, and only its second ever since it floated in 1999.

Overall revenues are tipped to be down 37% at $1.8bn, and Credit Suisse also warned Goldman's investment banking division, which has been hit by fears about the European debt crisis and an economic slowdown in the US, will see revenues tumble 29% to $825m.

Banks across the globe could well follow suit in coming weeks as the sell-off in markets around the globe continues to hammer investment banking revenues.

Goldmans has already responded in part after announcing a $1.2bn cost-cutting programme to be implemented by mid-2012.

The Telegraph said the group is now set to increase its cost cutting programme as tough economic conditions continue.

US banking season kicks off this week when J.P. Morgan announces its third quarter results Thursday.