The Wall Street giant attributed the decrease to market decline of $29 billion, primarily in equity assets, which was partially offset by net inflows of $6 billion.

Across the group, Goldman Sachs reported net revenues of $3.59 billion and a net loss  of $393 million for the three months ended 30 September. It does not break down its results for wealth management, which is not treated as a discrete element in the firm's results.

“Our results were significantly impacted by the environment and we were disappointed to record a loss in the quarter,” said Lloyd Blankfein, chairman and chief executive, in a statement

Better news was that the bank said it continued to be number one worldwide in announced mergers and acquisitions in 2011 so far.

Last month, it emerged that the company’s Global Alpha Fund, a hedge fund that uses computer-driven models to make money, will be shut after having suffered losses of around 12 per cent so far this year. The fund is to close by the end of this month.