Small cracks are beginning to show on Goldman Sachs’s remarkable trading record. In the second quarter, Goldman’s traders lost money on ten days, almost as many down days as the previous four quarters combined.
Although the second-quarter result still means that the bank’s traders registered gains 85% of the time, this performance nonetheless looks somewhat lacklustre in relation to previous quarters. Traders recorded “only” 17 days with more than US$100m in daily net trading revenue in the second quarter, half of the average achieved in the previous four quarters. An admirable record, to be sure, but for a bank that relies so heavily on trading—it accounted for 75% of total revenues in the second quarter—any stumble, however small, is keenly felt.