May
It’s Good to Be Goldman
Bloomberg reports that JPMorgan (JPM) equaled Goldman Sach’s (GS) stellar first quarter trading performance in not losing money on a single day, further confirmation that things are indeed back to normal on Wall Street (if not on main Street).
Daily trading revenue averaged $118 million on each of the 64 days in the first quarter, JPMorgan said in a regulatory filing yesterday with the U.S. Securities and Exchange Commission.
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JPMorgan said it doesn’t expect the same trading revenue throughout the year. “The high level of trading and securities gains in the first quarter of 2010 is not likely to continue throughout 2010,” the firm said in the filing.
Goldman Sachs, which is contesting a fraud lawsuit from the SEC related to the sale of a mortgage-linked security in 2007, reported yesterday that net revenue was $25 million or higher on each of the days it traded. The New York-based firm said it made more than $100 million on 35 of those days, or more than half the time.
Morgan Stanley, the sixth-largest U.S. bank by assets, reported May 7 that it made more than $120 million in trading revenue on seven separate days in the first quarter, or 11 percent of the time. The firm’s trading division lost money on four days during the quarter, compared with 14 days a year earlier, according to its filing. New York-based Morgan Stanley made money in trading on 57 of the 61 trading days in the first quarter, or 93 percent of the time.
Of course, borrowing money from the central bank at virtually zero cost and then lending a good portion of that money back to the Treasury Department at a much higher interest rate probably had a lot to do with the consistency of both firms.
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