All in quarter 2. In 2008, they lost money 97 days. In 2009, they lost money 42 days. starting in the second half of 2010, they have not had one losing day. Gee, if they were baseball players, and they had a spike in performance like that, we would think they are juicing wouldn't we.
I'm even more interested in numbers going back say 7-8 years ago and longer. Anybody have that kind of info?
Under their bail out all of their trading activity is backed by a low/no interest loan facility. Margin rules do not apply to at least the top 4 trading firms that were converted to banks. All 4 pitched perfect games the 1st quarter with a combined zero losing days trading. A margin call for you or me equals essentially a free loan to them. They are playing at a no limit roulette table at the wall street casino and can keep doubling up their bets on red until it hits. All of this gambling activity is backed by the full force and faith of our US treasury. Even the days they report a loss are just the draw down of their open bets.
Whats the big deal. My uncles grocery shop never had a losing day either. What do they both have in common that we dont: customers they can fleece.
The should give these Bank CEO's a "Times - Men of the year" award for getting themselves bailed out and providing the world with a massive turnaround in risk reduction and productivity.... They're so special.
Obviously 99% of their desks' business is quoting institutional customers bid and ask prices and ripping them off in the process. I am surprised they had any losing days at all.
And yet they've been involved in making markets and pocketing the spread for generations, yet that didn't stop many of them from blowing up, or at the very least having unprofitable quarters. The OP is right; it's entirely different from the old days and the whole dynamic between flow vs prop trading etc...