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One Trading Loss Day In Q1 Between Goldman, JPMorgan And Bank Of America Combined

Tyler Durden's picture


Zero Sum trading (in which the banks make money and taxpayers lose it) continues: following previous reports of trading perfection at both D-grade trading "powerhouse" Bank of Countrywide Lynch, and FRBNY-lite JP Morgan, Goldman craps the bad by being the only big bank so far to post a trading loss day in Q1 (even if it was for $0-25 million). This is unacceptable. As a result SLP latencies will be cut from 0 nanoseconds to -10, as Goldman will proceed to a Tachyon based trading infrastructure. In beta tests, such "frontrunning to the future" trading has already posted solid results: in addition to the humiliating trading day loss, GS had 32 days with profits of ">$100 million." And it still failed to impress... Now that HFT "girl around the block" Citi is no longer there for the taking by anyone with a growing liquidity rebate itch, this number will plunge.

Elsewhere, one wonders what caused the surge in daily trading VaR in the last days of March. Or perhaps at least someone appears to have made money on the Japan catastrophe.


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Tue, 05/10/2011 - 08:44 | 1258661 Xibalba
Xibalba's picture


Tue, 05/10/2011 - 08:54 | 1258672 Saxxon
Saxxon's picture

They are like fucking locusts.  May they turn to shit, each and all; particularly GS and their goddamned food arbitrage.

Tue, 05/10/2011 - 09:01 | 1258727 SheepDog-One
SheepDog-One's picture

Yea they more than fit the plague of locusts upon the world prophecy... what does everyone want, grasshoppers?

Tue, 05/10/2011 - 09:17 | 1258776 Dr. Richard Head
Dr. Richard Head's picture

Come on, don't be so harsh.  The primary dealers are just adding liquidity for the benefit of all society.  You know, God's work.  That is if God's work means pissing on the people from the clouds. 

Goldman, B of A, and JP Morgan - the bermuda traingle of pissing in the wind and calling it rain. 

FYI - the captchas are part of the reason why we have so many damned left/right cheerleaders in the world of ZH.  I miss the days of having to calculate intervals to get in the door. 

Tue, 05/10/2011 - 08:50 | 1258680 Upswaller
Upswaller's picture

It's just after 8:30 am.  Do you know where your Blythe is?

Tue, 05/10/2011 - 09:28 | 1258839 Ray1968
Ray1968's picture

Yup, attacking silver. All is normal.

Tue, 05/10/2011 - 08:50 | 1258681 Everybodys All ...
Everybodys All American's picture

Chairsatan Capitalism

Tue, 05/10/2011 - 08:53 | 1258689 samsara
samsara's picture
Statistically what are the chances of this?   I mean unless you make the rules,  the laws, and know the 'Future'  before it happens?   Lets see,  who owns them again?  oh that's right,   Rockefeller,  Rothchilds.... et al   and to get the deficit down,  Congressmen NoBrainer will cut all libraries,  parks,  etc How about selling the National Parks?   How about a big McDonalds sign on the face of Yosemite's El Capitan?
Tue, 05/10/2011 - 09:00 | 1258713 Buckaroo Banzai
Buckaroo Banzai's picture

Statistically, p=0. Unless the markets are rigged, in which case, p=1.

Tue, 05/10/2011 - 09:20 | 1258812 Dr. Richard Head
Dr. Richard Head's picture

You say rigged, they say wealth effect.  Trickle down economics at its best.  See above post of mine relating to wind pissing.

Tue, 05/10/2011 - 09:10 | 1258750 optionsoptions
optionsoptions's picture

Its not that hard to not lose money trading. Remember that these banks are scaling back their prop trading and are acting more like financial intermediaries. Instead of betting their own money, they are just collecting commissions. 

Tue, 05/10/2011 - 09:25 | 1258824 duo
duo's picture

given a 50-50 chance,  1/x, with x having something in the order of 19 zeros.  This is for only one loss in 65 trading days (13 weeks)

Tue, 05/10/2011 - 10:29 | 1259041 MachoMan
MachoMan's picture

yeah, but how many quarters has this been going on?

Tue, 05/10/2011 - 12:47 | 1259552 DavidC
DavidC's picture

Since the 10th of March 2009. You can work out the actual number of quarters...


Tue, 05/10/2011 - 08:57 | 1258705 John Law Lives
John Law Lives's picture

Wow.  This is what passes for "value creation" in this FUBAR Ponzi economy.  Computers are trading securities using nearly free money from Chairsatan...

100%  FUBAR Ponzi economy.

Tue, 05/10/2011 - 09:04 | 1258730 SheepDog-One
SheepDog-One's picture

Anything to keep the 401K bathrobe brigades sitting at home watching CNBC placated.

Tue, 05/10/2011 - 09:42 | 1258882 Dr. Richard Head
Dr. Richard Head's picture

I like to watch it in me tighty-whiteys while smoking my own belly button lint.  Jim Cramer is awesome on CNBC and was even better on Donald Chump's Apprentice....God, I just threw up in my own mouth just typing this.

Tue, 05/10/2011 - 08:55 | 1258708 Buckaroo Banzai
Buckaroo Banzai's picture

I can't believe Goldman actually lost money one day. Did they go in the tank just to make a point? "ha ha fuck you the only way we lose money is when we WANT to".


Tue, 05/10/2011 - 09:02 | 1258731 oogs66
oogs66's picture

nah, they got it wrong one day, but happens when you are trying to make $100 million half the days!  bac was a joke compared to this.  its harder to lose money when you aren't trying to make much

Tue, 05/10/2011 - 10:54 | 1259155 Hard1
Hard1's picture

Yes, they told them in the morning meeting, OK guys, today we will post a small loss in order not to look too abusive to our fellow rescuers errr taxpayers.

Tue, 05/10/2011 - 09:01 | 1258709 Cognitive Dissonance
Cognitive Dissonance's picture

Now that HFT "girl around the block" Citi is no longer there for the taking by anyone with a growing liquidity rebate itch, this number will plunge.

Try GOLD Bond for that itch.


Tue, 05/10/2011 - 08:59 | 1258710 ZeroPower
ZeroPower's picture

Why is it surprising that desks which officially deal in flow, and unofficially in prop, have such high revenues.

Who do you think pockets that spread on the illiquid CMBS youre (for one reason or another) trying to bid on? Their sales teams work 100x harder than the trading teams. Go back as long as you want, major BBs will always make money due to their MM abilities as well as abilitiy to cover any actual plain vanilla trading losses (not that theres many when have access to your research team) from their prop side.

Tue, 05/10/2011 - 08:59 | 1258712 Urban Redneck
Urban Redneck's picture

Who tipped a stripper 250 out of office petty cash and blew the quarter?

Tue, 05/10/2011 - 09:01 | 1258716 digalert
digalert's picture

"frontrunning to the future" ?

While reading this, I felt a force snatch a trade planned for market open today from my mind. JPM? GS?

Tue, 05/10/2011 - 09:01 | 1258718 Oh regional Indian
Oh regional Indian's picture

Inside information? You mean from the revolving door we have between wall street, D street and the Fed?
That's not inside information.
It's just old friends talking, is all.


Tue, 05/10/2011 - 08:58 | 1258719 SheepDog-One
SheepDog-One's picture

Wake me when people finally are fed up enough and are dragging out the bankster crooks to the streets tied in ropes.

Tue, 05/10/2011 - 09:02 | 1258733 Cognitive Dissonance
Cognitive Dissonance's picture

Considering how many banksters are into S&M this would just be seen as an afternoon delight.

Of course if you don't know the safe word, you don't have to stop.

Tue, 05/10/2011 - 09:00 | 1258725 Caviar Emptor
Caviar Emptor's picture

Does switching to Geico really save you 15% or more on car insurance?

Does Goldman have perfect trading days?

Tue, 05/10/2011 - 09:01 | 1258729 dogismyth
dogismyth's picture

hahaha...of course its a rigged game. Every day and every point is pre-planned.

And to think the ONLY reason the ponzi is sustained is because of you gamblers.

You reap what you sow. your productivity is zero.  you trade paper, like playing cards.  you steal from others.  a worthy and commendable activity.

So enjoy and have a nice day!!

Tue, 05/10/2011 - 09:07 | 1258739 Cognitive Dissonance
Cognitive Dissonance's picture

Who exactly is this "you" and "your" that you speak of?

Tue, 05/10/2011 - 09:17 | 1258792 dogismyth
dogismyth's picture

certainly not me sonny.  I cashed out a while back!

Tue, 05/10/2011 - 09:28 | 1258838 Cognitive Dissonance
Cognitive Dissonance's picture

Thank you for not answering my question.

Since you are pointing fingers, exactly who is this "you" and "your" that you refer to? ZH readers? ZH readers who leave comments? The general investor community? Or are you just pissing all over the place?

Tue, 05/10/2011 - 09:32 | 1258849 dogismyth
dogismyth's picture

do you enjoy acting ignorant?  Or is it willful blindness?   I'll be available for intelligent questions for the next half hour...after that, you're are on YOUR own.

Tue, 05/10/2011 - 09:38 | 1258868 fuu
fuu's picture

Someone call Goldman, one of the mail room clerks is posting on ZH again.

Tue, 05/10/2011 - 09:38 | 1258869 Cognitive Dissonance
Cognitive Dissonance's picture

Yup. Just as I thought.

Nothing here folks, move along.

Tue, 05/10/2011 - 11:11 | 1259206 Abitdodgie
Abitdodgie's picture

I agree with that statement it is only the compulsive gamblers that keep the market going ,of course the gamblers will attack before admitting there problem. As they think they don't loose money they break even ask any gambler when they come back from Vegas they did not loose that 5k they broke even , because that was gambling money .

Tue, 05/10/2011 - 09:34 | 1258861 gordengeko
gordengeko's picture

"You reap what you sow. your productivity is zero.  you trade paper, like playing cards.  you steal from others.  a worthy and commendable activity."

Glad god bestowed upon you the power to judge.  Oh looks like apparently there is a little hole in your glass house you're peeping through.

Tue, 05/10/2011 - 09:02 | 1258734 kaiserhoff
kaiserhoff's picture

Such a suspicious mind, Tyler.  If Hilary could do miracles in cattle futures why shouldn't the Squid... oh, wait.

Tue, 05/10/2011 - 09:04 | 1258740 LawsofPhysics
LawsofPhysics's picture

The financial sector of the world economy (which creates nothing of real value) remains a cancer that the broader sectors of the world economy (that actually create things of real value) can no longer support.

Now that the central banking cartel and five to ten families control all the wealth in the world, what are they going to do?  I hope they intend to employ the broader sectors of the world economy soon because those sectors are starting to get hungry.    Now things get interesting and the true metal of the world's "leaders" will become clear.

Tue, 05/10/2011 - 09:44 | 1258889 ZeroPower
ZeroPower's picture

And leeches like you think the developed world became such just by regular innovation? Just through Age of Industrialization perhaps? Who financed literally every single project from basic infrastructure upwards? 

While a rational argument might be the financial sector has gotten out of hands in terms of a country's reliance on it for prosperity, youre an absolute fool to want to go back to the dark ages of zero finances.

I hope you dont have any securities or RE, nor any form of insurance, otherwise you are a hippocrite.

Tue, 05/10/2011 - 11:15 | 1259163 LawsofPhysics
LawsofPhysics's picture

Typical response from a student of modern economics.  When all else fails you resort to the "fear" card.  Oh, a crash would be just "horrible", fuck off troll, you'll know who I am when you are hungry.  It isn't hard to "finance" something when you print money out of thin air.  I have already begun financing innovation based on my own holdings.  Let these financial fucknuts fail, responsible adults will step in to replace them. 

Tue, 05/10/2011 - 11:45 | 1259350 ZeroPower
ZeroPower's picture

Typical response from a liberal arts D student. You don't even address the valid issues i bring up, and continue with your pointless rhetoric. Im assuming your next step is to run for a political party, yes? 

Notice i have nothing positive to say about the current system of printing money ("debt") until it all explodes because im rational enough to see that, to this day, there is nothing else better in place. Unless of course you propose we barter billions of dollars of daily transactions in gold and silver coins. Simply not feasible.

Congrats on bragging on a forum about personal holdings with your "financing innovation", if you were waiting for internet props, i hereby officially give you them.

Tue, 05/10/2011 - 12:41 | 1259433 LawsofPhysics
LawsofPhysics's picture

You just called a former ARMY AMEDD officer and small business owner of 20+ years an "arts D student".  Pardon my ignorance, but what the fuck is that anyway? Sounds like someone who will be unemployable when they graduate.

  It seems that we both agree collapse is coming, I guess I am just not as afraid as you are.  I know my employees and my neighbors and I have faith in their abilities.  I would not have hired them or moved close to them otherwise.   The fact that I never said anything about bartering billions of coins further proves you as a troll.  The system needs to be grounded in reality.  The financial fucknuts in control can do the right thing or market fundamentals and the laws of physics will do it for them.  I choose to invest in good people and good ideas (something called due diligence) because it is the right thing to do.  If you want a better system, take ownership idiot and help make it happen.  

FYI- after a collapse, you won't have the need to "barter with billions of coins".  Economies will become very local and people will trade in anything of real value to that local community.

Tue, 05/10/2011 - 09:13 | 1258754 maneco
maneco's picture

I don't think Bernie Madoff had as good a record as these guys.

Tue, 05/10/2011 - 09:15 | 1258779 RobotTrader
RobotTrader's picture

Shorting commodities last week no doubt produced outsized gains once again for the PigMen firms.

Tue, 05/10/2011 - 09:19 | 1258785 dick cheneys ghost
dick cheneys ghost's picture

This news makes me sick to my stomach........

Tue, 05/10/2011 - 09:16 | 1258790 lizzy36
lizzy36's picture

One wonders what these trading numbers looked like from 2001-2008.

Did the rise in, Algo and HFT trading correlate to the rise in perfect (or almost perfect) quarterly trading records.

Tue, 05/10/2011 - 09:23 | 1258827 Waterfallsparkles
Waterfallsparkles's picture

You also have to realize that the Money they are making they are taking from the average American on their Trades.  That is Money that will not be able to be spent in the economy or saved for Retirement.

It is like the Banks own the Casino (Wall Street) and take a 15% profit on all money put in and another 15% when taken out.

Tue, 05/10/2011 - 09:24 | 1258836 Temporalist
Temporalist's picture

$100 Milllion just doesn't buy the amount of coke and sex slaves that it used to.

Tue, 05/10/2011 - 09:32 | 1258848 Stuck on Zero
Stuck on Zero's picture

It's not a zero-sum game.  If there are only three traders left on the NYSE they can continue to buy and sell from each other driving the prices to infinity. 

Tue, 05/10/2011 - 09:36 | 1258860 fuu
fuu's picture

How many trading loss days has GS had in the last year? 3 or 4?

Tue, 05/10/2011 - 09:49 | 1258907 Seasmoke
Seasmoke's picture

when i cheated on my exams and had the answers to the test even i as a teenager knew i had to miss a few of the answers so i didnt raise any red flags.....perhaps i should have just took the 100% A+ every time

Tue, 05/10/2011 - 10:10 | 1258974 citrine
citrine's picture

Clearly, GS is demonstrably becoming "the leader in things like ethics", just like Lloyd Blankfein proposed few months ago.

Tue, 05/10/2011 - 10:22 | 1259021 wawawiwaa
wawawiwaa's picture

Can we please please please stop playing into their game of calling this shit trading and at least change the header to frontrunning or client screwing. I mean it plays right into their hands cause it implies that they are doing a legitimate activity..

Tue, 05/10/2011 - 10:26 | 1259025 baby_BLYTHE
baby_BLYTHE's picture

What a friggin' joke!

There are people starving in this country and these guys get free play money from the FED and if they should go bust, a bailout by the taxpayers.

Land of the free home of the brave, of course.

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