Listen: Goldman Sachs, Goldman And Goma discussed on FT Banking Weekly
"A sense of how bad things have gotten for Goldman in fixed income trading and how the Bank found itself here. Say the Goma's stay committed to the fixing currencies and commodities business much more than peers did over the last decade in this in some ways has paid the price for that. So what we've seen Goma's ox is a former CEO, Lloyd, blankfein who talked repeatedly about the cyclical changes fixed income markets are undergoing when other banks talked about a secular change and began cutting back to meet that that's left Goldman basically having a lot of resources still in fixing even though the level of Mark actively has fallen so market wide. The overall the walls of fixing more than half in the last decade, go inside couldn't avoid gravity on us. If you look at Goldman Sachs zone performance in the last decade last year fixing him only maze. Five foot nine billion dollars of revenue or sixteen point one percent. All Goldman Sachs's token revenue which is I really remarkable thing. For a firmer fixing comes out the very hard. That's the lowest level of country in front fixed income in the last twenty years. I think fixed income definitely has never been a smaller part of Goldman Sachs than it is. Day. And in terms of how they got there is a couple of reasons why Goldman Sachs's fall has been sharp with appears since the crisis Gomez, actually better in the immediate aftermath of the crisis. As lead in the piece, they were lot more bullish. There was a perception Goldman Sachs in good shape there for it should take share for rivals. However that then led them into twenty ten on a really high level and took them a while to accept that. There had been early gains whether those gains maybe not the most stain about over the longer term. There was also I think because the firm was run by someone who come from the fixing contracting background, Lloyd, blankfein. There was a level of executive commitment to fixing control that maybe you wouldn't have seen so much in the other large banks, and certainly talking to people inside the company until top servers who knew it. Well, there was a feeling that it would have been very difficult for blind find to make material costs to fix Kibben for him to the clear eyed, and it's touched about it. As maybe say someone like to see you of UVS falls when they made their make fixing that was back in. Twelve now Goldman had first quarter numbers out this week. How did the Bank fair in the first three months of the year? And was there any update to this fixed income review in the first quarter? Actually, go Monday. She bodies that she in fixing trading. They're only down eleven percent compared to see JP Morgan who was dead eighteen percent here on year. So I"