As part of our overall risk control process, daily trading net revenues are compared with VaR calculated as of the end of the prior business day. Trading losses incurred on a single day did not exceed our 95% one-day VaR during the first quarter of 2009. Trading losses incurred on a single day exceeded our 95% one-day VaR on one occasion during the one month ended December 2008.
Goldman Sachsâs $100 Million Trading Days Hit Record
- Thread starter ASusilovic
- Start date
As part of our overall risk control process, daily trading net revenues are compared with VaR calculated as of the end of the prior business day. Trading losses incurred on a single day did not exceed our 95% one-day VaR during the first quarter of 2009. Trading losses incurred on a single day exceeded our 95% one-day VaR on one occasion during the one month ended December 2008.
Certain portfolios and individual positions are not included in VaR, where VaR is not the most appropriate measure of risk (e.g., due to transfer restrictions and/or illiquidity). The market risk related to our investment in the ordinary shares of ICBC, excluding interests held by investment funds managed by Goldman Sachs, is measured by estimating the potential reduction in net revenues associated with a 10% decline in the ICBC ordinary share price. The market risk related to the remaining positions is measured by estimating the potential reduction in net revenues associated with a 10% decline in asset values.
The sensitivity analyses for equity and debt positions in our trading portfolio and equity, debt (primarily mezzanine instruments) and real estate positions in our non-trading portfolio are measured by the impact of a decline in the asset values (including the impact of leverage in the underlying investments for real estate positions in our non-trading portfolio) of such positions. The fair value of the underlying positions may be impacted by factors such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt capital markets, and changes in financial ratios or cash flows.
The following table sets forth market risk for positions not included in VaR. These measures do not reflect diversification benefits across asset categories and, given the differing likelihood of the potential declines in asset categories, these measures have not been aggregated:
http://www.hoovers.com/free/co/secdoc.xhtml?ID=40176&ipage=6581534-904-719186
The sensitivity analyses for equity and debt positions in our trading portfolio and equity, debt (primarily mezzanine instruments) and real estate positions in our non-trading portfolio are measured by the impact of a decline in the asset values (including the impact of leverage in the underlying investments for real estate positions in our non-trading portfolio) of such positions. The fair value of the underlying positions may be impacted by factors such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt capital markets, and changes in financial ratios or cash flows.
The following table sets forth market risk for positions not included in VaR. These measures do not reflect diversification benefits across asset categories and, given the differing likelihood of the potential declines in asset categories, these measures have not been aggregated:
http://www.hoovers.com/free/co/secdoc.xhtml?ID=40176&ipage=6581534-904-719186
They probably are the smartestâprobably work the hardest, too. But that's what separates the very best from the very good: smarts (talent), hard work and cheating. Just ask A-Fraud.
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Quote from Roman Candle:
Goldman makes money because they pay top dollar for inside information. They have informants planted in every aspect of government. There not the smartest, they simply pay the most for information. In other words they CHEAT.
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I think that is becoming less and less of an issue for trading as china seem to drive global markets lately => inside info from US has less profit potential. Probably no inside info from China due to strict laws. Except if you think GS manipulating chinese market.
Quote from Roman Candle:
Goldman makes money because they pay top dollar for inside information. They have informants planted in every aspect of government. There not the smartest, they simply pay the most for information. In other words they CHEAT.
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I think that is becoming less and less of an issue for trading as china seem to drive global markets lately => inside info from US has less profit potential. Probably no inside info from China due to strict laws. Except if you think GS manipulating chinese market.
They are the smartest guys.
dead on
they're smart as they end up as treasury secretary and other important posts in the government which perpetuates their ability to control and influence the political agenda.
You would be surprised at the lack of intelligence & common sense at these I-banks. The guys at the very top who give the orders are very smart, but they try to stay behind the shadows. The rest just need enough intelligence to execute commands without mistakes, but not smart enough to really see how it really works. Otherwise they may get too many ideas. It's the same concept as hiring a restaurant manager, he can't be too smart or else he will steal.
Regardless, they don't make their money robbing the rest by being smarter or working harder. That's for fools.