Reuters
Business
Goldman lost money on two trading days: filing
Tue, Nov 09 17:54 PM EST
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By Maria Aspan

NEW YORK (Reuters) - Goldman Sachs Group Inc (GS.N) lost money on only two trading days during the third quarter, despite an industry-wide slump in trading volumes, according to a regulatory filing published on Tuesday.

The Wall Street firm lost no more than $25 million on two separate days, it said in a filing with the U.S. Securities and Exchange Commission. It made between $75 million and $100 million in net trading revenue on 24 different days and made over $100 million on seven days.

Rival Bank of America Corp (BAC.N) said in a filing last week it turned a profit during every trading day during the third quarter -- but on more than 25 of those days, it was making between $25 million and $50 million. It recorded more than $100 million in net trading revenue on less than five days in the quarter.

JPMorgan Chase & Co (JPM.N) also reported a quarter without trading losses. The bank said it had only eight days of trading losses in the first nine months of the year, according to a filing on Tuesday, and earlier filings show those eight days of losses were all in the second quarter. Over the first nine months of the year, the second-largest U.S. bank said it had trading profits of more than $200 million on 12 days.

Goldman's daily results were another sign of the firm's ability to weather severe business conditions, including weak trading conditions and increasing regulation.

The "Volcker rule" provision of the U.S. Dodd-Frank financial reform law, which limits the extent to which banks can bet with their own capital, prompted Goldman to start closing its proprietary trading business.

It said in the filing it has "liquidated substantially all of the positions that had been held within Principal Strategies" as of Tuesday.

Goldman also has been reviewing the practices of its Litton Loan Servicing unit after regulators and state attorneys general asked for information about its practices as part of an industry-wide probe into the foreclosure practices of banks, the firm said.

Its mortgage servicing unit has "temporarily suspended evictions and foreclosure and real estate owned sales in a number of states, including those with judicial foreclosure procedures," Goldman said in the filing.

The firm said it has not found evidence of any foreclosures that were unwarranted and that it does not expect its foreclosure suspension "to lead to a material increase in its mortgage servicing-related advances."

Goldman's shares closed down 1.6 percent at $166.55 in trading on the New York Stock Exchange. Bank of America shares were down 2.6 percent at $12.27 and JPMorgan shares were down 1.5 percent at $39.90.

(Reporting by Maria Aspan; additional reporting by Elinor Comlay; editing by Maureen Bavdek and Robert MacMillan)


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