Goldman Sachs Traders Posted Losses on 27 Days Last YearMichael J. Moore
Goldman Sachs Group Inc., which generated 46 percent of revenue from sales and trading last year, recorded losses from that business on 27 days in 2013, up from 16 the previous year.
None of the daily losses exceeded the firm’s value-at-risk, an estimate of potential losses with 95 percent confidence, the New York-based company said today in a filing with the U.S. Securities and Exchange Commission. Traders made more than $100 million on 34 days, down from 41 days a year earlier.
Goldman Sachs’s trading revenue fell 15 percent to $16 billion in 2013, excluding accounting charges, as the firm generated less from bond trading and sold a reinsurance unit that reported its results in the firm’s equities segment. The bank’s net income climbed 6 percent as Chief Executive Officer Lloyd C. Blankfein set aside a lower portion of revenue for pay.
Morgan Stanley, owner of the world’s biggest brokerage, reported this week that it lost money in its trading business on 33 days last year, down from 37 in 2012 and the fewest since 2006.
JPMorgan Chase & Co., the biggest U.S. bank, revised its gauge of market gains and losses to incorporate new regulatory requirements, resulting in a jump in the frequency of losses last year. Under the new method, JPMorgan posted gains on 177 of the 260 trading days in 2013, while the old measurement showed losses on zero days.