Goldman Sachs lost money on ten days in second quarter of 2010, filing reveals

10 August 2010

Goldman Sachs reported losses on ten days of trading during the second quarter of 2010, a filing to the Securities and Exchange Commission (SEC) has revealed.

According to the paper, on three of the ten days the losses were more than $100 million in relation to daily value at risk metrics.

During the first quarter of the year the investment bank reported that it did not make a loss on any of its trading days.

Walter Todd, co-chief investment officer at Greenwood Capital & Associates, told Reuters: “It speaks to the difficulty of the markets we're in right now.

“It's a very tough market for anyone to figure out and try to make any money."

Meanwhile, Morgan Stanley reported that it also lost money on 11 days during the second quarter.

In July, Goldman Sachs agreed to pay the SEC a fee of $550 million to settle accusations of misleading investors over a product linked to subprime mortgages.

The industry regulator alleged that the investment bank did not disclose how a hedge fund, which helped set up the opportunity, intended to bet against it.

By Jim Ottewill

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