Monday, April 26, 2010

Blankfein Statement is Out; Goldman Lost $1.2 Billion in Residential Market in 07/08

Lloyd Blankein's prepared opening  remarks for his testimony tomorrow before the Levin Committee are out. The full text of the remarks are in the EPJ Vault, here.

Of note, Blankfein states that between 2007 and 2008 Goldman lost $1.2 billion on  resedential housing securities. This falls in line with the numbers I received from a Goldman spokesman earlier today, but there is still no breakdown between trading profits and losses and writedowns.

As I explained earlier:

In 2008, they showed a loss of $1.7 billion in residential related product. They wouldn't breakdown for me any further the 2008 numbers as to how much of a loss there was from writedowns and whether there was a net trading profit or loss in 2008, so basically the 2008 number Goldman is putting out at this point is pretty useless without knowing more than the net-net number they are throwing out. For example, they could have had trading profits of $ 3 billion and writedowns of $4.7 billion, for the net loss number of $1.7 billion, which is really hiding a huge trading profit number.
Some questioning tomorrow by a Senator, or two, along these lines might be enlightening.

No comments:

Post a Comment