Goldman Has Fewest Trading-Day Losses Since at Least 2004
By Michael J. Moore & Christine Harper - Mar 1, 2013 9:08 AM ETGoldman Sachs Group Inc. (GS), which generated 53 percent of revenue from sales and trading last year, recorded losses from that business on 16 days in 2012, the fewest since the bank started reporting the figure in 2004.
The days of losses, detailed in a regulatory filing from the New York-based company today, were down from 54 in 2011 and below the previous low of 19 days in 2009. Traders made more than $100 million on 41 days, down from 54 days a year earlier and the least since 2005.
Goldman Sachs said it’s been redeeming hedge-fund holdings to comply with the Volcker rule and the firm outlined risks to its businesses from attempts to regulate foreign subsidiaries. Revenue from sales and trading advanced 5 percent to $18.1 billion in 2012 even as value-at-risk, a measure of how much the firm could lose from trades in a single day, was the lowest since 2005, the firm reported in January.
“The bulk of what you’re seeing is the decline in market volatilities, it’s not a reduction in risk or capital deployment,” Harvey M. Schwartz, Goldman Sachs’s chief financial officer, told analysts on Jan. 16. “There was no top- down directive, for example, to take less risk.”
Morgan Stanley (MS), owner of the world’s biggest brokerage, reported Feb. 26 that it lost money in its trading business on 37 days last year, down from 64 in 2011 and the fewest since 2007. Traders in JPMorgan Chase & Co. (JPM)’s investment bank lost money on seven days in 2012, down from 26 in 2011.
Goldman Sachs’s net income rose 68 percent last year to $7.5 billion as debt underwriting surged and the firm marked up the value of its own investments.
The firm said in today’s filing that it began redeeming investments in hedge funds to comply with the Volcker rule, which limits such holdings for U.S. banks. Since March 2012, Goldman Sachs has taken back as much as 10 percent of redeemable interests in certain hedge f
this stock market reminds me of the two pig farmers selling the same pig back and forth for a higher price each time. Someone will be left with the pig. I've said that for the past year or so, but it's gonna come to fruition soon enough.
They're massive book makers/market makers. Do you know what a maket maker does? It's not the same as a book maker, plus they are backed by the FDIC as a base and allowed to leverage up higher than any other entity with regards to their relative size. They blew their own brains out earlier, thinking they owned the system but realized they are nothing without their own investors confidence.
Markets are not supposed to destroy it self with over confidence. When somethings don't work, other industries take up the slack. You're listening to too much political #$%$ and being a total diehard supporter to boot. Diehards don't make compromise, they dictate! Don't worry, the lobbyists are behind the scenes. It's the system. You're supposed to make money despite who's in power! Be scared of yourself!