Goldman stuns Wall Street with weak trading results
New York — Wall Street bank Goldman Sachs Group reported on Tuesday it missed earnings expectations due to a drop in trading revenue even as its rivals reported major trading gains. Goldman, the fifth-largest US bank by assets, blamed weakness in commodities, currencies, and credit revenue, as well as lower commissions and fees from equities trading. But the results came in sharp contrast to those from JPMorgan Chase, Citigroup I and Bank of America, which all beat estimates due to strength in trading. On a conference call with analysts, Goldman’s newly appointed finance chief, R Martin Chavez, said that while markets improved during the quarter, a lack of volatility meant clients were trading less. During the period, the CBOE Volatility Index reached its lowest level since before financial crisis. Oil prices were also trading at years-low volatility levels. But the lack of volatility did not hurt competitors and management had a hard time clarifying what went wrong at Goldman Sachs...
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