Macaskill on markets: Competitors look for clues from Goldman’s equity losses
A serious second-quarter equity trading stumble by Goldman Sachs led to predictions that its investment banking dominance might be coming to an end as a new regulatory era dawns.
Jon Macaskill is one of the leading capital markets and derivatives journalists, with over 20 years’ experience covering financial markets from London and New York. Most recently he worked at one of the biggest global investment banks
The trading mishap should instead serve as a warning of how little the present global regulatory overhaul is likely to affect the behaviour of all the main dealers.
Goldman’s problems must be put in context. The firm certainly had a bad quarter by its own standard of almost constant outperformance of its peer group. Revenue from its main business line of trading and principal investments was down 39% from the second quarter of 2009 to $6.55 billion, a level that also marked a dip of 36% from the first quarter of 2010.