Goldman Sachs (GS) Traders Are Human After All
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Price: $1,055.97 +2.56%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
EPS Growth %: +28.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
EPS Growth %: +28.4%
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After posting a perfect record in the first three months of 2010, Goldman Sachs Group Inc. (NYSE: GS) posted trading losses on 10 days in the second quarter, according to the company’s quarterly report on Monday.
The investment bank said of the days in the red during the three month period ended in June, the losses amounted to more than $100 million on three occasions as bearish tendencies and the May 6 “flash crash" caused instability.
In the first quarter, Goldman was able to report trading gains of at least $25 million on each day.
Goldman had to deal with the pull back in the markets in the second quarter, as the S&P 500 dropped 12 percent in the period in the wake of the flash crash and the growing investor fear that the economic recovery may be slowing under the weight of high unemployment.
The firm was far less consistent in the period as trading returns seesawed from big returns to losses, mirroring the markets. Goldman was able to post 17 trading days with gains of more than $100 million, but added 12 days of nothing to $25 million to add to the 10 days of reporting losses.
Morgan Stanley (NYSE: MS) reported 11 days of losses in the in the period, while Bank of America Corp. (NYSE: BAC) saw only one day of trading losses in excess of $100 million.
The results from Goldman came in as it was attempting to resolve the civil-fraud case brought against it by the Securities and Exchange Commission and as the firm works to comply with the new restriction placed upon its proprietary trading.
Goldman is reportedly weighing a number of options as how to proceed under the new restrictions.
Shares of Goldman closed the trading session up 22 cents at $155.40 on Monday.
The investment bank said of the days in the red during the three month period ended in June, the losses amounted to more than $100 million on three occasions as bearish tendencies and the May 6 “flash crash" caused instability.
In the first quarter, Goldman was able to report trading gains of at least $25 million on each day.
Goldman had to deal with the pull back in the markets in the second quarter, as the S&P 500 dropped 12 percent in the period in the wake of the flash crash and the growing investor fear that the economic recovery may be slowing under the weight of high unemployment.
The firm was far less consistent in the period as trading returns seesawed from big returns to losses, mirroring the markets. Goldman was able to post 17 trading days with gains of more than $100 million, but added 12 days of nothing to $25 million to add to the 10 days of reporting losses.
Morgan Stanley (NYSE: MS) reported 11 days of losses in the in the period, while Bank of America Corp. (NYSE: BAC) saw only one day of trading losses in excess of $100 million.
The results from Goldman came in as it was attempting to resolve the civil-fraud case brought against it by the Securities and Exchange Commission and as the firm works to comply with the new restriction placed upon its proprietary trading.
Goldman is reportedly weighing a number of options as how to proceed under the new restrictions.
Shares of Goldman closed the trading session up 22 cents at $155.40 on Monday.
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