GOLDMAN Sachs lost money trading in 21 days out of the third quarter of this year, it revealed yesterday in regulatory fillings.
That compares to losses on just two days in the same quarter last year on its proprietary trading desk, which recorded net negative revenues of $2.48bn (£1.56bn) for the third quarter of this year.
The bank also grew nervous throughout the quarter and cracked down on the amount of money that could be put at risk each day. The average daily “value at risk” was $100m versus $120m in the same period last year. It lost more than $100m on one day in the period.
Goldman’s filings also give an estimate for “reasonably possible losses” due to legal cases, putting the maximum possible cost at $2.6bn. It added that it could face additional inestimable losses from other cases where plaintiffs have not yet specified how much they are suing over.
The bank is embroiled in numerous disputes resulting from the fallout of the financial crisis, with many former clients – including government-sponsored firms Fannie Mae and Freddie Mac – claiming they were sold products without fully knowing the risks involved.
Goldman also revealed that it has increased its cash on deposit at the Federal Reserve since the start of the year: the money in its Fed account rose from $28.12bn to over $30bn as of September.
The bank shocked markets by reporting its second ever quarterly loss as a public company last month, losing 84 cents per share.