“Listen people, we’ve got to turn up the heat. I want enough cash to pay back the TARP, get our warrants back, retire the FDIC insured debt, fill the bonus pool, buy Bank of America and dismantle it, acquire Gulfstream from General Dynamics to vertically integrate our corporate aviation needs, and elect Hank Paulson President in the next cycle. Get to work people. Especially you folks at the trading desks.”
Goldman Sachs’s so-called value-at-risk, the amount the New York-based bank estimates it could lose from trading in a day, jumped 22 percent to $240 million in the first quarter, twice what Morgan Stanley stands to lose, company reports show. VaR climbed 2.8 percent in the same period at JPMorgan Chase & Co. and dropped 14 percent at Credit Suisse Group AG.
Goldman Sachs Boosts Risk-Taking at Fastest Pace on Wall Street [Bloomberg]
Proves that Credit Suisse are a bunch of fuckin pussies
Hit me
Hit me
Hit me
D’OH!
Is it considered “risk-taking” when the deck is stacked in your favor?
The pit boss in Vegas didn’t buy my argument that I was simply “smarter” than everyone else by using loaded dice.
Well played @3! Well played!
Finance 1-on-1. Goldman and all other banks are essentially backstopped by their equity, then by fed. From a managers point of view this is an at the money our out of the money free call option. When they increase their risk, their call option increases in value.
Why does anyone still bother with VaR besides perhaps “yup, ok, moving on” sort of reaction? Is it just the biz media’s lack of understanding of risk management (or risk managers misunderstanding of same?
Morgan Stanley doesn’t have a freaking clue WHAT their VAR number is. They just make the shit up as they go along. Fired their whistle-blower in that area if I recall correctly.
what are the var numbers for a first year at kbw? cantor? twp?
The best time to use the initialed phrase “VaR” is in an interview. No one uses it after that.
@8, i hear stub numbers r off 69%
So Goldman, given the current market it seems a little strange that you’re taking on so much risk. What is the thinking behind this?
Well we have an inside man…I mean plan…I mean an internal plan, that we created here inside GS, that has absolutely nothing to do with anyone in the government that may have previously worked for us…because that would be crazy right? Next question.
@5 don’t you mean 101? Wow. What school did you go to
VaR who is your CEO
I worked at Lehman, what is a VaR?
@12: Wow, you’re right.
Finance 1-on-1 = Fuqua grad…