Wow! The hype about Goldman Sachs' (GS) third-quarter earnings is really strong. One news article referred to the firm as the one "considered the most profitable in Wall Street history." Wall Street history? Not sure what the methodology behind that was, but that's a strong assertion. Still, that's the feeling in the wake of the firm's $5.25 a share profits. Analysts were expecting just $4.25 a share. Revenue more than doubled to $12.37 billion.

Goldman's business from fixed income, currency and commodities trading again bolstered its bottom line, with revenue more than tripling. In some ways, Goldman has returned to pre-crash traditions. Revenue from its principal investments soared 55 percent, masking a minor loss on real estate investments. Revenue from FICC more than tripled. All that offset declines in investment banking revenue and financial advisory revenue. 

It did all this while it ratcheted down its value at risk, which fell to $208 million from $245 million in the second quarter. All this sets up a tricky PR challenge. They'll have to defend their bonuses and somehow portray their business as ethical and pro-Main Street. The times are still tough for most people. It's on track to pay out more than the record $20 billion it paid in 2007. It's bonus pool stands at nearly $17 billion as of Sept. 30. 

For more:
- here's the release
- here are the highlights

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