Goldman posts $3.5B earnings despite woes

The profit is significantly higher than observers expected the banking giant would take in, which could likely help its standing after its stock price plummeted last Friday after the Securities and Exchange Commission (SEC) filed its charges.

{mosads}”In light of recent events involving the firm, we appreciate the support of our clients and shareholders, and the dedication and commitment of our people,” Goldman Sachs CEO Lloyd Blankfein said in a statement.

Goldman has entered the crosshairs of lawmakers in Washington after the charges were made public. Democrats who support the sweeping financial regulatory overhaul have used the company as a reason to implement the legislation.

The firm was charged with creating a financial product backed by shaky sub-prime mortgage loans that regulators allege was designed to fail.

Senate Banking Committee Chairman Chris Dodd (D-Conn.) said this week that the financial bill could have prevented the incident if it had been law.

Republicans have pushed back against the charges, and some have questioned their timing considering the debate over the Wall Street bill in Congress.

President Barack Obama will head to New York on Thursday to deliver an address at Cooper Union aimed at reforming the country’s financial regulations.

The earnings statement could give supporters of the legislation more ammunition against the firm.