Is Goldman Sachs Making Too Much Money?

There’s no shame in making money. Making money is, after all, every company’s goal. And when our companies do well, that’s generally good for the country. Under normal circumstances Goldman Sachs would have every reason to brag about it’s first quarter profits.

But now—with Goldman facing charges for securities fraud and apparently seeking to block financial reform legislation—the bank’s windfall profits seem to raise the question of whether it’s making its money legitimately.

Goldman reported an impressive $3.3 billion first quarter profit today. That’s its second highest quarterly profit since going public in 1999, and it comes after earning a record $4.79 billion in the fourth quarter of last year. It’s also an increase of 91% on the year. And on revenue of $12.8 billion it’s a tidy 26 cents profit for every dollar it earned, which is actually down from the from the almost 50 cents of profit it made for every dollar of revenue the quarter before.

Of course, these profits have nothing to do with the 2007 trades the Securities and Exchange Commission says are fraudulent. And Goldman’s reputation as the gold standard of banks is well-earned, so it should be no surprise that it’s doing well.

But you still have to wonder just how it’s making so much money in an otherwise anemic economy.