Goldman Sachs has reported a $2.12 billion loss for the fourth quarter, a larger loss than analysts had expected.
The sharp decline from a profit of $3.22 billion in 2007 was blamed on a fall in the value of assets across all classes.
Chairman and chief executive, Lloyd Blankfein, said: "While our quarterly performance obviously didn't meet our expectations, Goldman Sachs remained profitable during one of the most challenging years in our industry's history."
The result is the bank's first quarterly loss since going public in 1999.
Goldman Sachs and Morgan Stanley are the only two independent investment banks left after the credit crisis claimed rivals Lehman Brothers, Merrill Lynch and Bear Stearns.
Both have now become bank holding companies, which allows them to take deposits from investors.
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