Real Estate Woes Drive Billion-Dollar Hit for Goldman Sachs

It’s a tough time to be in the real estate business. That means Goldman Sachs Group Inc. is feeling some pain, too. The bank isn’t the largest property lender, but it has more than $14 billion of real estate investments. Writedowns of those bets helped drive a $1.15 billion hit in the second quarter. The firm didn’t detail which properties drove the loss, which was spread across equity and debt investments on its balance sheet as well as some consolidated investment entities. Goldman added a slide on its commercial real...