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Goldman Sachs Group Inc. reported quarterly earnings that showed trading profits slumping in the fourth quarter of its 2014 fiscal year. Overall revenue for the bank was down 12 percent in the final quarter of 2014 when compared to the same quarter a year earlier. Profit dropped to $ 2.17 billion, or $ 4.38 a share, in the quarter, 7 percent lower than the $ 2.33 billion, or $ 4.60 a share, in profit recorded in the fourth quarter of 2013. Even with the drop in earnings, the numbers from the latest quarter were a bit better than analysts had expected.

Trading for bonds, currencies and commodities were the most notable weak spots in Goldman Sach's businesses. The traders who buy and sell bonds, currencies and commodities have been Goldman's biggest source of revenue in recent years. Goldman's trading desks once made it the most profitable firm in the industry. Low interest rates and economic weakness has made the trading market an increasingly challenging one.

Goldman's competitors were not hit as hard by the drop in trading. Many of Goldman's competitors have exited or reduced their exposure to fixed-income trading, but Goldman has held strong, hoping to capitalize as its competitors disappeared. The strategy seemed to backfire in the latest quarter

The company reported a sharp decline in trading revenue. Goldman reported that fixed-income trading revenues fell 29 percent from a year ago and 44 percent from the previous quarter. The disappointing trading results weighed down earnings for the quarter. Goldman's fixed-income losses were amplified by a bad $ 835 million loan made to Banco Espirito Santo, a Portuguese bank, earlier this year.

There were some bright spots for Goldman Sachs in its earnings report. In the latest quarter, fees from advising companies on mergers and acquisitions rose 18 percent from a year earlier. Asset management for wealth clients and big investors also produced higher revenue. Throughout 2014, the bank spent $ 5.5 billion to buy its own shares back from shareholders.