Tuesday, April 18, 2017
Goldman Sachs Stumbles with Big Trading Miss
-- With all those super smart people...couldn't happen to a more deserving group.
Goldman Sachs first-quarter trading results fell far short of Wall Street’s expectations even as rivals reported a strong quarter.
Investors had expected a strong quarter for Goldman, regarded by many on the street as the most nimble trading shop. After rivals Citigroup and J.P. Morgan Chase reported huge year-over-year increases in trading revenue–boosted by strength in their fixed-income, currencies and commodities (FICC) trading units–expectations for Goldman rose even higher.
Instead of showing improvement, however, Goldman reported a 2.4 percent decline in trading revenue. Equities trading revenue fell 6 percent from a year earlier. FICC trading was flat compared with a year earlier.
“We didn’t navigate the market well,” said Goldman Sachs financial chief Martin Chavez.