Goldman reported their $100MM+ trading days. It is a stunner: Goldman made over $100 million on 46 out of the 65 total trading days in Q2, 70% of total. Goldman made over $50 million on 58 of the 65 total trading days in Q2, 89.2% of total.
As a reminder, here is what GS' trading days looked like in Q1.
Wow. But surely this phenomenal improvement in daily P&L generation came as a result of the firm taking on more risk? Why, no Virginia- Goldman's VaR at the end of Q2 was lower than the end of Q1.
So let's see - progressivelly higher daily revenues on progressively lower "indicated" risk-taking. It is so painfully obvious that the traders at Goldman still have not figured out how to game the system.
Oh, and the 12 $100MM (at least) trading days jump in Q2 vs Q1, why that's exactly the cost to Goldman to pay down its TARP warrants. Goldman is so lucky - the company can just print money while trading and pay off its liabilties. One wonders if Ben Bernanke is at least a little concerned that GS has its own $ printing press courtesy of the fine folks at the SEC.
hat tip Nic