Many days of $100 million gains at Goldman Sachs
One of the more interesting metrics that has drawn attention over the past few years: The number of trading days on which a bank made more than $100 million. There was a time when such a sum was unheard of. But Goldman Sachs (Goldman Sachs news) has just revealed in a filing that it had made at least $100 million on 131 days in 2009. That compares with 90 days in 2008. To achieve this, required more risk.
The Financial Times notes that the bank boosted its value at risk to $218 million, up from $180 million in 2008. This will provide more fodder for those who believe Goldman Sachs is indeed a giant hedge fund (hedge fund news). Trading and principal investments account for more than 75 percent of the bank's net revenue. As for 2010, most assume that these sorts of trading gains aren't going to be there. There was a vacuum that emerged as the credit crisis took hold, and Goldman Sachs really cleaned up. But competitors are flooding back in.
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