Goldman, which converted from an investment bank into a bank holding company in September, lost $2.12bn in the fourth quarter, or a loss of $4.97 per share. The bank's top seven executives, including chief executive Lloyd Blankfein, will not receive any bonuses this year.

For the year, Goldman's revenues dropped by 52 per cent, from $46bn in 2007 to $22.2bn through November 30. Among its major business units, the biggest drop was in revenues in trading and principal investments, which posted $9bn in revenues for the year, a plunge of 71 per cent. Within that unit, Goldman sustained a $3.5bn loss related to real estate holdings.

“Our results for the fourth quarter reflect extraordinarily difficult operating conditions, including a sharp decline in values across virtually every asset class,” said Mr Blankfein.