We knew Goldman has an awesome quarter with respect to trading, but the steadiness of the bank’s profits in this area are something to behold.
Bloomberg: Goldman Sachs Group Inc. made more than $100 million in trading revenue on a record 46 separate days during the second quarter, or 71 per cent of the time, breaking the previous high of 34 days in the prior three months. Trading losses occurred on two days during the months of April, May and June, down from eight in the first quarter, the New York-based bank said today in a filing with the U.S. Securities and Exchange Commission. The company made at least $50 million on 58 of the 65 trading days during the quarter, or 89 per cent of the time.
Of course, conspiracy theorists will think this has something to do with them stealing money, or frontrunning or engaging in High-Frequency Trading. But they said yesterday that HFT-related gains accounted for just 1% of annual revenue (so about $500 million), which means there’s no way that can account for so many $100 million days.
That being said, nobody has offered an explanation of how they pull this off so steadily.
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