Monday, April 26, 2010

Profit Numbers on Goldman's Trades in Residental Related Products

This comes direct from Goldman Sachs.

They made a net-profit of approximately only $500 million from their residential related products trading in 2007. 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.

I wonder what Goldman is hiding?

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