The Goldman Sachs Group, Inc. (GS) 8-K Goldman Sachs Reports Third Quarter Earnings Per Common Share of $6.13

Exhibit 99.1

The Goldman Sachs Group, Inc. | 85 Broad Street | New York, New York 10004
GOLDMAN SACHS REPORTS THIRD QUARTER EARNINGS PER COMMON SHARE OF $6.13

NET REVENUES WERE $12.3 BILLION, SECOND HIGHEST QUARTER

NEW YORK, September 20, 2007 — The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $12.33 billion and net earnings of $2.85 billion for its third quarter ended August 31, 2007. Diluted earnings per common share were $6.13 compared with $3.26 for the third quarter of 2006 and $4.93 for the second quarter of 2007. Annualized return on average tangible common shareholders’ equity ⁽¹⁾ was 36.6% for the third quarter of 2007 and 37.5% for the first nine months of 2007. Annualized return on average common shareholders’ equity was 31.6% for the third quarter of 2007 and 32.0% for the first nine months of 2007.

Business Highlights

• Investment Banking produced record quarterly net revenues of $2.15 billion, driven by results in Financial Advisory which were 64% higher than the previous record.

• Goldman Sachs ranked first in worldwide announced mergers and acquisitions for the calendar year-to-date.⁽²⁾

• Fixed Income, Currency and Commodities (FICC) generated record quarterly net revenues of $4.89 billion, reflecting strength across most businesses.

• Equities generated record quarterly net revenues of $3.13 billion, including record commissions.

• Asset Management generated record management and other fees of $1.15 billion. Assets under management increased 27% from a year ago to a record $796 billion, with net inflows of $50 billion during the quarter.

• Securities Services achieved record quarterly net revenues of $762 million, reflecting continued strength in the prime brokerage business.

“Given the difficult environment of the third quarter, many of our businesses were challenged,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “But overall, the quality of our franchise produced strong results as clients continue to look to us for advice and execution. The strength of our client relationships, the diversity of our businesses, and the talent and teamwork of our people continue to drive our performance.”

Media Relations: Lucas van Praag 212-902-5400    |    Investor Relations: Heather Kennedy Miner 212-855-0758

Net Revenues

Investment Banking

Net revenues in Investment Banking were $2.15 billion, 67% higher than the third quarter of 2006 and 25% higher than the second quarter of 2007, as mergers and acquisitions activity remained strong. Net revenues in Financial Advisory were $1.41 billion, more than double the amount of net revenues in the third quarter of 2006, reflecting significantly higher client activity. Net revenues in the firm’s Underwriting business were $733 million, 8% higher than the third quarter of 2006, due to higher net revenues in equity underwriting, primarily reflecting an increase in industry-wide equity and equity-related offerings,partially offset by lower net revenues in debt underwriting, as the financing environment became less favorable. The decrease in debt underwriting reflected lower net revenues in leveraged finance.The firm’s investment banking transaction backlog decreased during the quarter, but was higher than at the end of 2006.⁽³⁾

Trading and Principal Investments

Net revenues in Trading and Principal Investments were $8.23 billion, 70% higher than the third quarter of 2006 and 24% higher than the second quarter of 2007.

Net revenues in FICC were $4.89 billion, 71% higher than the third quarter of 2006, reflecting significantly higher net revenues in currencies and interest rate products. Net revenues in mortgages were also significantly higher, despite continued deterioration in the market environment. Significant losses on non-prime loans and securities were more than offset by gains on short mortgage positions. In addition, net revenues in both commodities and credit products were higher compared with the third quarter of 2006. Credit products included substantial gains from equity investments, including a gain of approximately $900 million related to the disposition of Horizon Wind Energy L.L.C. In addition, credit products included a loss of $1.71 billion ($1.48 billion, net of hedges) related to non-investment grade credit origination activities. Although the mortgage and corporate credit markets were characterized by significantly wider spreads and reduced levels of liquidity, FICC benefited from strong customer-driven activity and favorable market opportunities in certain businesses during the quarter.

Net revenues in Equities were $3.13 billion, more than double the amount of net revenues in the third quarter of 2006. Net revenues were significantly higher in derivatives, reflecting strength across all regions, as well as in shares due to higher commission volumes. In addition, net revenues in principal strategies increased compared with the third quarter of 2006. During the quarter, Equities operated in an environment characterized by strong customer-driven activity and higher volatility.

Principal Investments recorded net revenues of $211 million, reflecting gains and overrides from real estate principal investments. Results in Principal Investments included a $230 million gain related to the firm’s investment in the ordinary shares of Industrial and Commercial Bank of China Limited (ICBC) and a $261 million loss related to the firm’s investment in the convertible preferred stock of Sumitomo Mitsui Financial Group, Inc. (SMFG).

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Asset Management and Securities Services

Net revenues in Asset Management and Securities Services were $1.96 billion, 35% higher than the third quarter of 2006 and 8% higher than the second quarter of 2007.

Asset Management net revenues were $1.20 billion, 31% higher than the third quarter of 2006, reflecting a 40% increase in management and other fees, partially offset by lower incentive fees. During the quarter, assets under management increased $38 billion to $796 billion, reflecting money market net inflows of $31 billion,non-money market net inflows of $19 billion spread across all asset classes, and net market depreciation of $12 billion, reflecting depreciation in equity and alternative investment assets, partially offset by appreciation in fixed income assets.

Securities Services net revenues were $762 million, 42% higher than the third quarter of 2006, as the firm’s prime brokerage business continued to generate strong results, reflecting significantly higher customer balances in securities lending and margin lending.

Expenses

Operating expenses were $8.08 billion, 55% higher than the third quarter of 2006 and 20% higher than the second quarter of 2007.

Compensation and Benefits

Compensation and benefits expenses were $5.92 billion, 68% higher than the third quarter of 2006, primarily reflecting the impact of higher net revenues. The ratio of compensation and benefits to net revenues was 48.0% for the first nine months of 2007 compared with 49.4% for the first nine months of 2006. Employment levels increased 7% during the quarter.

Non-Compensation Expenses

Non-compensation expenses were $2.16 billion, 27% higher than the third quarter of 2006 and 16% higher than the second quarter of 2007. The increase compared with the third quarter of 2006 was primarily attributable to continued geographic expansion and the impact of higher levels of business activity. The majority of this increase was in brokerage, clearing, exchange and distribution fees, which principally reflected higher transaction volumes in Equities. Other expenses also increased and included provisions for litigation and regulatory proceedings of $35 million.

Provision For Taxes

The effective income tax rate was 33.2% for the first nine months of 2007, essentially unchanged from the first half of 2007 and down from 34.5% for fiscal year 2006. The decrease in the effective tax rate from fiscal year 2006 was primarily due to changes in the geographic earnings mix and an increase in tax credits.

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Capital

As of August 31, 2007, total capital was $190.19 billion, consisting of $39.12 billion in total shareholders’ equity (common shareholders’ equity of $36.02 billion and preferred stock of $3.10 billion) and $151.07 billion in unsecured long-term borrowings. Book value per common share was $84.65 and tangible book value per common share was $73.10 ⁽¹⁾, each increasing 4% compared with the end of the second quarter of 2007. Book value and tangible book value per common share are based on common shares outstanding, including restricted stock units granted to employees with no future service requirements, of 425.5 million at period end.

The firm repurchased 11.2 million shares of its common stock at an average cost per share of $219.35, for a total cost of $2.45 billion during the quarter. The remaining authorization under the firm’s existing share repurchase program is 23.0 million shares.

Dividends

The Board of Directors of The Goldman Sachs Group, Inc. (the Board) declared a dividend of $0.35 per common share to be paid on November 26, 2007 to common shareholders of record on October 29, 2007. The Board also declared dividends of $404.41, $387.50, $404.41 and $399.13 per share of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, respectively (represented by depositary shares, each representing a 1/1,000th interest in a share of preferred stock), to be paid on November 13, 2007 to preferred shareholders of record onOctober 29, 2007.

Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not historical facts but instead represent only the firm’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the firm’s control. It is possible that the firm’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the firm’s future results and financial condition, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the fiscal year ended November 24, 2006 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the firm’s Annual Report on Form 10-K for the fiscal year ended November 24, 2006.

Statements about the firm’s investment banking transaction backlog also may constitute forward-looking statements. Such statements are subject to the risk that the terms of these transactions may be modified or that they may not be completed at all; therefore, the net revenues, if any, that the firm actually earns from these transactions may differ, possibly materially, from those currently expected. Important factors that could result in a modification of the terms of a transaction or a transaction not being completed include, in the case of underwriting transactions, a decline in general economic conditions, outbreak of hostilities, volatility in the securities markets generally or an adverse development with respect to the issuer of the securities and, in the case of financial advisory transactions, a decline in the securities markets, an adverse development with respect to a party to the transaction or a failure to obtain a required regulatory approval. For a discussion of other important factors that could adversely affect the firm’s investment banking transactions, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the fiscal year ended November 24, 2006.

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Conference Call

A conference call to discuss the firm’s results, outlook and related matters will be held at 11:00 am (ET). The call will be open to the public. Members of the public who would like to listen to the conference call should dial 1-888-281-7154 (U.S. domestic) or 1-706-679-5627 (international). The number should be dialed at least 10 minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the firm’s web site,www.gs.com/our_firm/investor_relations/. There is no charge to access the call. For those unable to listen to the live broadcast, a replay will be available on the firm’s web site or by dialing 1-800-642-1687 (U.S. domestic) or 1-706-645-9291 (international) passcode number 14824766, beginning approximately two hours after the event. Please direct any questions regarding obtaining access to the conference call to Goldman Sachs Investor Relations, via e-mail, atgs-investor-relations@gs.com.

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THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
SEGMENT NET REVENUES
(UNAUDITED)
$ in millions

	Three Months Ended									% Change From
	Aug. 31,			May 25,			Aug. 25,			May 25,			Aug. 25,
	2007			2007			2006			2007			2006
Investment Banking
Financial Advisory	$	1,412		$	709		$	609			99	%		132	%
Equity underwriting		355			358			270			(1	)		31
Debt underwriting		378			654			409			(42	)		(8	)
Total Underwriting		733			1,012			679			(28	)		8
Total Investment Banking		2,145			1,721			1,288			25			67
Trading and Principal Investments
FICC		4,889			3,368			2,860			45			71
Equities trading		1,799			1,415			707			27			154
Equities commissions		1,330			1,082			844			23			58
Total Equities		3,129			2,497			1,551			25			102
SMFG		(261	)		(64	)		261			N.M.			N.M.
ICBC		230			(125	)		(8	)		N.M.			N.M.
Other corporate and real estate gains and losses		148			909			142			(84	)		4
Overrides		94			64			35			47			169
Total Principal Investments		211			784			430			(73	)		(51	)
Total Trading and Principal Investments		8,229			6,649			4,841			24			70
Asset Management and Securities Services
Management and other fees		1,152			1,035			822			11			40
Incentive fees		46			20			96			130			(52	)
Total Asset Management		1,198			1,055			918			14			31
Securities Services		762			757			537			1			42
Total Asset Management and Securities Services		1,960			1,812			1,455			8			35
Total net revenues	$	12,334		$	10,182		$	7,584			21			63
	Nine Months Ended						% Change From
	Aug. 31,			Aug. 25,			Aug. 25,
	2007			2006			2006
Investment Banking
Financial Advisory	$	2,982		$	1,953			53	%
Equity underwriting		979			1,035			(5	)
Debt underwriting		1,621			1,297			25
Total Underwriting		2,600			2,332			11
Total Investment Banking		5,582			4,285			30
Trading and Principal Investments
FICC		12,861			11,158			15
Equities trading		5,377			3,730			44
Equities commissions		3,336			2,622			27
Total Equities		8,713			6,352			37
SMFG		(164	)		605			N.M.
ICBC		332			(12	)		N.M.
Other corporate and real estate gains and losses		2,180			626			N.M.
Overrides		373			199			87
Total Principal Investments		2,721			1,418			92
Total Trading and Principal Investments		24,295			18,928			28
Asset Management and Securities Services
Management and other fees		3,169			2,422			31
Incentive fees		156			939			(83	)
Total Asset Management		3,325			3,361			(1	)
Securities Services		2,044			1,684			21
Total Asset Management and Securities Services		5,369			5,045			6
Total net revenues	$	35,246		$	28,258			25

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THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
In millions, except per share amounts and employees

	Three Months Ended									% Change From
	Aug. 31,			May 25,			Aug. 25,			May 25,			Aug. 25,
	2007			2007			2006			2007			2006
Revenues
Investment banking	$	2,145		$	1,720		$	1,285			25	%		67	%
Trading and principal investments		7,576			6,242			4,368			21			73
Asset management and securities services		1,272			1,107			975			15			30
Interest income		12,810			11,282			9,351			14			37
Total revenues		23,803			20,351			15,979			17			49
Interest expense		11,469			10,169			8,395			13			37
Revenues, net of interest expense		12,334			10,182			7,584			21			63
Operating expenses
Compensation and benefits		5,920			4,887			3,530			21			68
Brokerage, clearing, exchange and distribution fees		795			638			523			25			52
Market development		148			144			117			3			26
Communications and technology		169			161			141			5			20
Depreciation and amortization		145			140			126			4			15
Amortization of identifiable intangible assets		53			50			50			6			6
Occupancy		218			210			221			4			(1	)
Professional fees		188			161			135			17			39
Cost of power generation		88			81			101			9			(13	)
Other expenses		351			279			278			26			26
Total non-compensation expenses		2,155			1,864			1,692			16			27
Total operating expenses		8,075			6,751			5,222			20			55
Pre-tax earnings		4,259			3,431			2,362			24			80
Provision for taxes		1,405			1,098			768			28			83
Net earnings		2,854			2,333			1,594			22			79
Preferred stock dividends		48			46			39			N.M.			N.M.
Net earnings applicable to common shareholders	$	2,806		$	2,287		$	1,555			23			80
Earnings per common share
Basic	$	6.54		$	5.25		$	3.46			25	%		89	%
Diluted		6.13			4.93			3.26			24			88
Average common shares outstanding
Basic		429.0			435.8			449.4			(2	)		(5	)
Diluted		457.4			464.1			477.4			(1	)		(4	)
Selected Data
Employees at period end(4)		29,905			28,012			25,647			7			17
Ratio of compensation and benefits to net revenues		48.0	%		48.0	%		46.5	%

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THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
In millions, except per share amounts

	Nine Months Ended						% Change From
	Aug. 31,			Aug. 25,			Aug. 25,
	2007			2006			2006
Revenues
Investment banking	$	5,581		$	4,276			31	%
Trading and principal investments		22,891			17,976			27
Asset management and securities services		3,512			3,545			(1	)
Interest income		34,450			25,430			35
Total revenues		66,434			51,227			30
Interest expense		31,188			22,969			36
Revenues, net of interest expense		35,246			28,258			25
Operating expenses
Compensation and benefits		16,918			13,952			21
Brokerage, clearing, exchange and distribution fees		1,984			1,414			40
Market development		424			338			25
Communications and technology		481			396			21
Depreciation and amortization		417			378			10
Amortization of identifiable intangible assets		154			128			20
Occupancy		632			613			3
Professional fees		510			367			39
Cost of power generation		253			308			(18	)
Other expenses		924			789			17
Total non-compensation expenses		5,779			4,731			22
Total operating expenses		22,697			18,683			21
Pre-tax earnings		12,549			9,575			31
Provision for taxes		4,165			3,190			31
Net earnings		8,384			6,385			31
Preferred stock dividends		143			91			N.M.
Net earnings applicable to common shareholders	$	8,241		$	6,294			31
Earnings per common share
Basic	$	18.89		$	13.92			36	%
Diluted		17.75			13.12			35
Average common shares outstanding
Basic		436.2			452.1			(4	)
Diluted		464.3			479.7			(3	)
Selected Data
Ratio of compensation and benefits to net revenues		48.0	%		49.4	%

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NON-COMPENSATION EXPENSES
(UNAUDITED)
$ in millions

	Three Months Ended						% Change From
	Aug. 31,		May 25,		Aug. 25,		May 25,			Aug. 25,
	2007		2007		2006		2007			2006
Non-compensation expenses of consolidated investments(5)	$	101	$	101	$	153		—	%		(34	)%
Non-compensation expenses excluding consolidated investments
Brokerage, clearing, exchange and distribution fees		795		638		523		25			52
Market development		146		142		108		3			35
Communications and technology		168		161		139		4			21
Depreciation and amortization		128		121		103		6			24
Amortization of identifiable intangible assets		52		48		48		8			8
Occupancy		200		192		188		4			6
Professional fees		188		160		132		18			42
Cost of power generation		88		81		101		9			(13	)
Other expenses		289		220		197		31			47
Subtotal		2,054		1,763		1,539		17			33
Total non-compensation expenses, as reported	$	2,155	$	1,864	$	1,692		16			27

	Nine Months Ended				% Change From
	Aug. 31,		Aug. 25,		Aug. 25,
	2007		2006		2006
Non-compensation expenses of consolidated investments(5)	$	289	$	371		(22	)%
Non-compensation expenses excluding consolidated investments
Brokerage, clearing, exchange and distribution fees		1,984		1,414		40
Market development		418		313		34
Communications and technology		479		391		23
Depreciation and amortization		367		325		13
Amortization of identifiable intangible assets		150		126		19
Occupancy		581		528		10
Professional fees		508		358		42
Cost of power generation		253		308		(18	)
Other expenses		750		597		26
Subtotal		5,490		4,360		26
Total non-compensation expenses, as reported	$	5,779	$	4,731		22

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THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(UNAUDITED)

Average Daily VaR⁽⁶⁾
$ in millions

	Three Months Ended
	Aug. 31,			May 25,			Aug. 25,
	2007			2007			2006
Risk Categories
Interest rates	$	96		$	81		$	55
Equity prices		97			101			61
Currency rates		23			20			21
Commodity prices		24			24			31
Diversification effect(7)		(101	)		(93	)		(76	)
Total	$	139		$	133		$	92

Assets Under Management⁽⁸⁾
$ in billions

	As of						% Change From
	Aug. 31,		May 31,		Aug. 31,		May 31,			Aug. 31,
	2007		2007		2006		2007			2006
Asset Class
Alternative investments	$	151	$	151	$	139		—	%		9	%
Equity		251		253		193		(1	)		30
Fixed income		230		221		186		4			24
Total non-money market assets		632		625		518		1			22
Money markets		164		133		111		23			48
Total assets under management	$	796	$	758	$	629		5			27

	Three Months Ended
	Aug. 31,			May 31,		Aug. 31,
	2007			2007		2006
Balance, beginning of period	$	758		$	719	$	593
Net inflows / (outflows)
Alternative investments		7			—		13
Equity		7			7		4
Fixed income		5			7		10
Total non-money market net inflows / (outflows)		19			14		27
Money markets		31			4		3	(9)
Total net inflows / (outflows)		50			18		30
Net market appreciation / (depreciation)		(12	)		21		6
Balance, end of period	$	796		$	758	$	629

Principal Investments⁽¹⁰⁾
$ in millions

	As of August 31, 2007
	Corporate		Real Estate		Total
Private	$	5,627	$	1,695	$	7,322
Public		1,863		47		1,910
Subtotal		7,490		1,742		9,232
SMFG convertible preferred stock(11)		3,690		—		3,690
ICBC ordinary shares(12)		6,281		—		6,281
Total	$	17,461	$	1,742	$	19,203

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Footnotes

(1)

Tangible common shareholders’ equity equals total shareholders’ equity less preferred stock, goodwill and identifiable intangible assets, excluding power contracts. Identifiable intangible assets associated with power contracts are not deducted from total shareholders’ equity because, unlike other intangible assets, less than 50% of these assets are supported by common shareholders’ equity. Management believes that return on average tangible common shareholders’ equity (ROTE) is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed internally. ROTE is computed by dividing net earnings (or annualized net earnings for annualized ROTE) applicable to common shareholders by average monthly tangible common shareholders’ equity. Tangible book value per common share is computed by dividing tangible common shareholders’ equity by the number of common shares outstanding, including restricted stock units granted to employees with no future service requirements.

The following table sets forth a reconciliation of total shareholders’ equity to tangible common shareholders’ equity:

	Average for the						As of
	Three Months Ended			Nine Months Ended
	August 31, 2007			August 31, 2007			August 31, 2007
	(unaudited, $ in millions)
Total shareholders’ equity	$	38,667		$	37,384		$	39,118
Preferred stock		(3,100	)		(3,100	)		(3,100	)
Common shareholders’ equity		35,567			34,284			36,018
Goodwill and identifiable intangible assets, excluding power contracts		(4,926	)		(4,956	)		(4,915	)
Tangible common shareholders’ equity	$	30,641		$	29,328		$	31,103

(2)	Thomson Financial — January 1, 2007 through August 31, 2007.
(3)	The firm’s investment banking transaction backlog represents an estimate of the firm’s future net revenues from investment banking transactions where management believes that future revenue realization is more likely than not.
(4)	Excludes 4,904, 4,841 and 9,901 employees as of August 2007, May 2007 and August 2006, respectively, of consolidated entities held for investment purposes. Compensation and benefits includes $40 million, $50 million and $83 million for the three months ended August 31, 2007, May 25, 2007 and August 25, 2006, respectively, attributable to these consolidated entities.
(5)	Consolidated entities held for investment purposes are entities that are held strictly for capital appreciation, have a defined exit strategy and are engaged in activities that are not closely related to the firm’s principal businesses. For example, these investments include consolidated entities that hold real estate assets, such as hotels, but exclude investments in entities that primarily hold financial assets. Management believes that it is meaningful to review non-compensation expenses excluding expenses related to these consolidated entities in order to evaluate trends in non-compensation expenses related to the firm’s principal business activities.
(6)	VaR is the potential loss in value of Goldman Sachs’ trading positions due to adverse market movements over a one-day time horizon with a 95% confidence level. The modeling of the risk characteristics of the firm’s trading positions involves a number of assumptions and approximations. While management believes that these assumptions and approximations are reasonable, there is no standard methodology for estimating VaR, and different assumptions and/or approximations could produce materially different VaR estimates. For a further discussion of the calculation of VaR, see Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” in the firm’s Annual Report on Form 10-K for the year ended November 24, 2006.
(7)	Equals the difference between total VaR and the sum of the VaRs for the four risk categories. This effect arises because the four market risk categories are not perfectly correlated.
(8)	Substantially all assets under management are valued as of calendar month end. Assets under management do not include the firm’s investments in funds that it manages.
(9)	Includes the transfer of $8 billion of money market assets under management to interest-bearing deposits at Goldman Sachs Bank USA, a wholly owned subsidiary of The Goldman Sachs Group, Inc. These deposits are not included in assets under management.
(10)	Represents investments included within the Principal Investments component of our Trading and Principal Investments segment. Excludes assets related to consolidated investment funds of $17.11 billion as of August 2007, for which Goldman Sachs is not at risk.
(11)	Excludes an economic hedge on the shares of common stock underlying the investment. As of August 2007, the fair value of this hedge was $2.69 billion. Includes the effect of foreign exchange revaluation on the investment, for which Goldman Sachs also maintains an economic hedge.
(12)	Includes interests of $3.97 billion as of August 2007 held by investment funds managed by Goldman Sachs. The fair value of the investment in the ordinary shares of ICBC, which trade on The Stock Exchange of Hong Kong, includes the effect of foreign exchange revaluation, for which Goldman Sachs maintains an economic currency hedge.

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