*Note: Goldman did take a $700m loss for CMBS commercial real estate. This is the next shoe to drop. However, the government will likely bail out the banks and their exposure to CMBS. Just amazing what ijiots taxpayers really are. SHORT GS
Goldman Blow Out Q2 Revenues On Principal Trading; VaR Hits New All Time Record: $245MM Total VaR
As if anyone expected less than one of the most ridiculous beats ever.
Some amusing Q1 over Q2 comparisons:
Equity Underwriting: $48 million vs $736 million
Equities Trading (not commissions): $1,027 vs $2,157 million
Total Trading and Principal Investments: $5,706 vs $9.322 million
ICBC: ($151) vs $948 million
Notable: VaR hits what looks like another record high at $245 million, higher by $5 million from the last March record. Also, the fudge "diversification factor" is almost at $100 million: excluding it the company has a VaR of almost $345 million. One can barely hold their breath to see the number of $100 MM+ trading days in the quarter.
Also, for those curious what comp will be like at Goldman, here is some color:
Compensation and benefits expenses (including salaries, estimated year-end discretionary compensation, amortization of equity awards and other items such as payroll taxes, severance costs and benefits) were $6.65 billion, which was higher than the second quarter of 2008, primarily due to higher net revenues. The ratio of compensation and benefits to net revenues was 49% for the first half of 2009. Total staff decreased 1% during the quarter.
FYI: $6.65 billion for the quarter, $4.712 billion for Q1, annualized this is $22.7 billion, divided by 29,400 employees, means an average comp of $772,925/employee. Enjoy, dear taxpayer.
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