Greed is no longer good – bond boom comes to an end

Profits at Goldman Sachs fall 40% with other investment banks badly hit as calm returns to the markets

City bond traders have put the champagne on ice. They had a good run. For some it lasted almost a year. But it's over now and the "new normal" of low trading volumes and weak profits is reasserting itself.

On Wall Street, Goldman Sachs took the biggest hit. This week the firm reported profits had plunged 40% in the second quarter on its bond, currency and commodities trading desks.