Goldman Sachs CEO warns of softness in fixed-income trading as expenses surge

Goldman Sachs CEO David Solomon delivered a double dose of bad news on September 16: the bank’s fixed-income trading unit is underperforming, and costs across the firm are climbing fast. The combination sent Goldman’s stock sliding as much as 4%, dragging broader bank stocks along for the ride. Solomon said the fixed-income, currencies, and commodities division, known internally as FICC, has come in softer during the third quarter compared to prior periods. At the same time, non-compensation expenses are projected to jump more than $500 million quarter-over-quarter, fueled by heightened client activity and accelerated technology investments. A tale of two trading desks The weakness in FICC stands in sharp contrast to Goldman’s equities trading division, which Solomon described as notably strong. FICC revenue surged 32% year-over-year in Q2 2026, a quarter that looked like a vindication of Goldman’s trading prowess. But Q1 told a different story, with FICC revenue dropping 10% year-over-year to $4.01 billion, partly blamed on geopolitical instability tied to the ongoing Iran conflict. Solomon also flagged a likely slowdown in investment banking activity for Q3, a reversal from the s...