Goldman&nbsp;Sachs reported a steep drop in second-quarter profits Wednesday (July 19) as it continued to struggle with an anemic merger and acquisition market and weakness in trading.

Profits came in at $1.1 billion, down 62 per cent from the year-ago period. Revenues fell eight percent to $10.9 billion.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/tesla-seeks-to-expand-german-factory-to-make-it-biggest-in-country-617442">Tesla seeks to expand German factory to make it biggest in country</a>

The big investment bank, which has essentially abandoned a once-touted push to compete with retail banks for Main Street consumers, pointed to a "significant decline in industry-wide completed mergers and acquisitions transactions" as a drag on its critical global banking and markets division.

Revenues also tumbled in trades connected to fixed income, commodities and &nbsp;currencies; revenues were flat in equities trading.

Goldman&nbsp;also suffered a drop in its other main division, asset and wealth management, citing net losses and markdowns in real estate.

In a June interview on CNBC,&nbsp;Goldman&nbsp;Sachs Chief executive David Solomon had warned of the hit to commercial real estate in the wake of higher interest rates and a shift to remote work.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/equity-benchmark-indices-hit-fresh-peaks-sensex-breaches-67000-mark-in-intra-day-trade-617101">Equity benchmark indices hit fresh peaks; Sensex breaches 67,000-mark in intra-day trade</a>

Solomon has come under scrutiny over his management of the bank's consumer banking business, which was begun by predecessor Lloyd Blankfein but aggressively expanded by Solomon.

A recent Wall Street Journal expose described the storied firm as at "war with itself," highlighting widespread complaints of partners about Solomon, who championed the acquisition of fintech platform GreenSky in 2021, an asset the bank now plans to divest.

Shares of&nbsp;Goldman&nbsp;dipped 0.1 per cent to $336.95 in pre-market trading.

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Goldman Sachs reported a steep drop in second-quarter profits Wednesday (July 19) as it continued to struggle with an anemic merger and acquisition market and weakness in trading.

Goldman Sachs reported a steep drop in second-quarter profits Wednesday (July 19) as it continued to struggle with an anemic merger and acquisition market and weakness in trading. Profits came in at $1.1 billion, down 62 per cent from the year-ago period. Revenues fell eight percent to $10.9 billion. Also read | Tesla seeks to expand German factory to make it biggest in country The big investment bank, which has essentially abandoned a once-touted push to compete with retail banks for Main Street consumers, pointed to a "significant decline in industry-wide completed mergers and acquisitions transactions" as a drag on its critical global banking and markets division. Revenues also tumbled in trades connected to fixed income, commodities and currencies; revenues were flat in equities trading. Goldman also suffered a drop in its other main division, asset and wealth management, citing net losses and markdowns in real estate. In a June interview on CNBC, Goldman Sachs Chief executive David Solomon had warned of the hit to commercial real estate in the wake of higher interest rates and a shift to remote work. Also read | Equity benchmark indices hit fresh peaks; Sensex breaches 67,000-mark in intra-day trade Solomon has come under scrutiny over his management of the bank's consumer banking business, which was begun by predecessor Lloyd Blankfein but aggressively expanded by Solomon. A recent Wall Street Journal expose described the storied firm as at "war with itself," highlighting widespread complaints of partners about Solomon, who championed the acquisition of fintech platform GreenSky in 2021, an asset the bank now plans to divest. Shares of Goldman dipped 0.1 per cent to $336.95 in pre-market trading. WATCH WION LIVE HERE:

Goldman Sachs reports 62% drop in Q2 profits on low merger activity

Amid coronavirus outbreak, US stocks and bond yields tumbled on Tuesday, after the Federal Reserve lowered its benchmark interest rate by 0.5 percentage point, to a target range of 1.00% to 1.25%. The yield on the 10-year Treasury note briefly dropped below 1%, a record low.

US Fed rates cut by 0.5% to a target range of 1% - 1.25%

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Goldman Sachs reports 62% drop in Q2 profits on low merger activity

US Fed rates cut by 0.5% to a target range of 1% - 1.25%