Goldman Sachs Has First Perfect Quarter With Zero Trading Loss

Discussion in 'Wall St. News' started by ASusilovic, May 10, 2010.

  1. May 10 (Bloomberg) -- Goldman Sachs Group Inc.’s traders made money every single day of the first quarter, a feat the firm has never accomplished before.

    Daily trading net revenue was $25 million or higher in all of the first quarter’s 63 trading days, New York-based Goldman Sachs reported in a filing with the U.S. Securities and Exchange Commission today. The firm reaped more than $100 million on 35 of the days, or more than half the time.

    Goldman Sachs, which is facing a fraud lawsuit from the SEC related to the firm’s sale of a mortgage-linked security in 2007, generated $9.74 billion in trading revenue in the first quarter, exceeding all of its Wall Street competitors. Trading accounted for 76 percent of first-quarter revenue.

    “This is the first time we have reported zero trading loss days in a quarter,” Samuel Robinson, a Goldman Sachs spokesman, said in an e-mail today. “We believe it shows the strength of our customer franchise and risk management.”

    The bank, which reported record earnings last year, is contesting the SEC’s lawsuit and the firm’s executives were interrogated at a Senate subcommittee hearing last month. Goldman Sachs, which maintains that it did nothing wrong, is also being investigated by federal prosecutors, said people familiar with the matter.

    In its SEC filing today, Goldman Sachs said it is expecting further litigation related to sales of collateralized debt obligations.

    “We anticipate that additional putative shareholder derivative actions and other litigation may be filed, and regulatory and other investigations and actions commenced against us with respect to offering of CDOs,” the bank said in a quarterly filing with the SEC today.

    The firm’s stock has dropped 22 percent since the SEC lawsuit was filed on April 16, making it the worst performer among the six largest U.S. banks so far in 2010. Goldman Sachs’s first-quarter earnings were the second-highest in the company’s history.

    Speechless...A heappening I would statistically describe as "impossible"..
  2. S2007S



    “We believe it shows the strength of our customer franchise and risk management.”

  3. wmb


  4. I don't know why this is a surprise. When the market is rigged, the casino wins. All the time. What's so surprising?

    The only thing that is rather stunning to me is that the populace of the country continues on it's merry way allowing the corruption to continue.
  5. Then why have they never done it before and does it make sense to release this news during this PR shitstorm?
  6. “This is the first time we have reported zero trading loss days in a quarter”

    ooh fuck

    now i see why there's so much anger among ET posters. the losing side of those GS trades must be actively posting here.
  7. TraDaToR


    They are just incredibly good...They had numerous quarters with just 1 to 5 down days before, and other banks/institutions as well. That's what you get when you exploit hundreds of strategies with high sharpe ratio / profit factor across a wide range of assets.

    However, if you prefer to believe that the fed / government tell them every morning what will be the direction of the market, it's your right. Of course there should be some insider stuff or unfair advantage like subpennying on stocks, but basically they make money because they are crazy good...
  8. There have been too many sore losers on ET the past 24 months. Seriously people, the markets aren't any more manipulated now then they were 100 years ago. If you think differently you're a fool and I will be happy to take your liquidity.
  10. Retief


    Sheeet, Jack Hersey must be trading for GS.
    #10     May 10, 2010