Skip to content
Subscriber Only

Wall Street Made Huge Profits Off Deep Freeze, at Least on Paper

  • Goldman, Morgan Stanley, BofA reap gains from power, gas
  • Profits uncertain because of market mayhem after freeze
Snow covers the ground in Waco, Texas, on Feb. 17.

Snow covers the ground in Waco, Texas, on Feb. 17.

Photographer: Matthew Busch/AFP/Getty Images
Updated on

Traders across Wall Street are poised for significant profits from the freeze that roiled energy markets and left swaths of the U.S. without electricity last month. That is, if they can collect.

Goldman Sachs Group Inc. could gain more than $200 million from the physical sale of power and natural gas and from financial hedges after spot prices surged across much of the U.S., according to people with knowledge of the matter. Morgan Stanley’s gains could come in under $200 million, according to a person with familiar with the matter, and Bank of America Corp. stands to rake in profits as well.