Monday, July 13, 2009

I am amazed

Analysts predict the bank earned a profit of more than $2 billion in the March-June period, because of its trading prowess across world markets.

Whether Goldman can keep this up is anyone’s guess. With so much riding on trading, the risk is that the bank might make a misstep in the markets, or that today’s moneymaking trades will simply vanish. The second half of 2009 looks tougher, many analysts say.

Goldman is not the only bank that appears to be returning to health. JPMorgan Chase is also emerging as one of the strongest players in this new era of American finance. JPMorgan and several other big banks are expected to report strong second-quarter profits as well this week, again in large part based on robust trading results."
(NY Times)

I am glad that Goldman Sachs is making buckloads of money again. Warren Buffett invested 5 billion dollars (10% of common stock) late year into Goldman with very favorable terms. He's going to make tons of money as well.

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