Skip to content
Subscriber Only
Business
Economics

Goldman Sachs Lost Money on Volatility Bet in Quarter

Goldman Sachs Group Inc., the bank that makes the most trading equities, lost money in the second quarter by betting on a drop in stock-market volatility just as a gauge of equity-price swings surged to a one-year high.

“Primarily in response to our client needs, our equity derivatives business was short volatility entering the second quarter and posted poor results,” Chief Financial Officer David Viniar said on a conference call with reporters today. The firm didn’t break out the size of the loss or the overall results from the equity derivatives group responsible for the business.