=DJ Goldman Racks Up Perfect Quarter In Trading
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By Joe Bel Bruno
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Goldman Sachs Group Inc. (GS) notched another record from its prolific trading division: The perfect quarter.
The investment bank reported it didn't lose any money at the end of each trading day during the first quarter. Traders raked in more than $100 million daily for 35 days and made no less than $25 million during the rest of the three-month period, according to a regulatory filing.
Goldman's bristling trading business, which accounted for a bulk of the firm's record 2009 results, has long been lauded as the best on Wall Street. But, the blistering pace of trading profit during the quarter might exacerbate criticism that Goldman has an unfair advantage in the markets.
The firm has been accused of profiting by betting heavily against the housing market when it first began to crack, while at the same time advising clients to snap up complex mortgage-backed securities that later plunged in value. Goldman made more than $9.7 billion in trading revenue last year as it emerged from a financial crisis that crippled many of its biggest global competitors.
Goldman is also facing a civil-fraud lawsuit leveled against it last month by the Securities and Exchange Commission related to the sale of mortgage-linked securities. Goldman, which has denied wrongdoing to the government's complaint, also faces an investigation by Federal prosecutors and other shareholder-driven litigation.
Lloyd C. Blankfein, Goldman's chairman and chief executive, said during Friday's annual meeting that the investment bank will look into ways the company can confront the current scrutiny over its business practices. "The last few weeks have been
.. difficult and disappointing," Blankfein told shareholders on Friday. "Questions have been raised that have gone to the heart of our most fundamental value: How we treat our clients."
The trading results during the first quarter handily beat results from longtime rival Morgan Stanley (MS), which said it lost as much as $30 million daily on four days during the quarter. Morgan Stanley made between $60 million and $90 million on each of 16 days during the quarter, and between $210 million and $240 million on one day.
Brett Philbin contributed to this story from New York.
-By Joe Bel Bruno, Dow Jones Newswires; 212-416-2469; joe.belbruno@dowjones.com
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(END) Dow Jones Newswires
May 10, 2010 12:57 ET (16:57 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 12 57 PM EDT 05-10-10 |
