As Luck Would Have It, Goldman Sachs Didn't Actually Lose $1 Billion On Currency Bets Last Month: Goldman Sachs

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Or, at least, if it did, the Reuters-reported loss did not take into account "many of the firm's market-making and client facilitation strategies" which "utilize financial instruments across various product types," and therefore is "not representative of the way in which the firm manages its business activities."

The New York firm sought to dispel concerns of steep losses after a Reuters article on Wednesday said Goldman lost more than $1 billion on currency trades in the quarter.

Reuters reported that Goldman suffered the loss based on regulatory filings made with the Securities and Exchange Commission and the Federal Reserve. The article pointed out that the numbers disclosed in the government filings aren't always the same as the quarterly profit-and-loss and balance-sheet figures companies report….

"A significant portion of the firm's cash instruments and derivatives has exposure to foreign currencies and may be economically hedged with foreign currency contracts."

And, in case you were wondering, the Journal news room is loving every minute of this, because, if you were not aware:

Reuters competes with The Wall Street Journal in news reporting.

Goldman Says It Didn't Suffer Quarterly Loss in Currency Unit [WSJ]
Goldman Sachs burned by bad currency bets in third quarter [Reuters]

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