Six months ago, Goldman reported its first quarterly loss since going public in 1999, after being battered by the economic crisis.
But it then surprised Wall Street by reporting a $1.8bn profit for the first three months of the year, despite the financial crisis.
And the bank said it had benefitted from higher volumes of trading in shares, while seeing record revenues from currency and commodities trading during the second quarter.
Matthew 10:34Think not that I am come to send peace on earth: I came not to send peace, but a sword.
So why isn't this working at General Motors?
Isnt it kinda funny that a company that owes GS a large amount of money (AIG) are given a large bailout while competitors of GS are denied. AIG after recieveing 65B can then make its payment of 16B to GS.
The government bailout of AIG did not have a material effect on Goldman's balance sheet, regardless of what you may have heard.
Link?Furthermore, they are taking huge risks to make this profit. If that risk turns sour. It will be the taxpayer that will take the loss, not Goldman.
This is pretty much wrong from beginning to end, except for where you note that they have skill in trading.Many in the industry are voicing concern for Goldman. The few banks that have tried to follow Goldman's risky investing have been smashed by losses. To be sure, Goldman has skill in trading. However, the fact remains that they should be out of business. Their business model failed. Taxpayers rescued them. They still owe taxpayer's at least 13 billion. They are risking another collapse.
People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.