NEW YORK (Reuters) - Goldman Sachs had more trading risk in the second quarter, but earned less trading revenue, in a reflection of how difficult it is for even the best regarded investment banks to generate earnings growth now.
The company's value-at-risk, a measure of trading risk known as "VaR," rose 38 percent in the second quarter from the same quarter last year. That meant the bank had maximum potential losses of $184 million (94 million pounds) on 95 percent of the trading days in the quarter, up from $133 million a year ago.
Meanwhile, trading revenue fell 16 percent from a year ago. It was Goldman's second straight quarter of higher VaR and lower trading revenue.
That raised the eyebrows of some analysts and risk management experts, who wondered if Goldman is getting fully compensated for the risks it takes by trading on behalf of clients or for its own account.
http://uk.reuters.com/article/stocksAndSharesNews/idUKNOA83662020080618
Goldman Sachs spokesperson say that you shouldn't read anything into these numbers. Ooooooh....Kayyyyy
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
