because they allocated those losses to clients instead of to the firm. that's why its Global Alpha fund got a big drawdown last summer. profitable trades: GS allocates them to itself unprofitable trades: GS allocates them to the fund managing opm
This doesn't make any sense... if they do that, clients walk away and the funds are shut down. The Global Alpha group live on their fees, not GS's prop desk revenue....
Goldman would have been bankrupt if they did not covert to a money market center. You can nuthug them all you want, but the facts remain that Goldman was finished just like the rest if not for that transition.