Goldman Sachs (NYSE:GS) is investigated on transactions with Greek government
Goldman Sachs Group Inc. posted 1 day of trading losses in Q-1, according to a Quarterly regulatory filing.
The loss was up to $25-M, the firm said. In contrast, Goldman reported 24 days of trading gains of $100-M or more.
The Wall Street firm said it continues to engage in a dialogue with the Securities and Exchange Commission about an investigation into a Y 2006 subprime residential mortgage-backed securities offering. Goldman disclosed in February it had received a Wells Notice regarding the $1.3-B offering.
The firm has made a submission to, and intends to continue to engage in a dialogue with, the SEC staff seeking to address their concerns, Goldman said in a filing early Thursday morning.
The firm faces a possible ratings downgrade by Moody's Investors Service, which is reviewing its ratings for 17 global banks in light of the diminished profitability of investment banking.
Goldman said a 1 and 2-notch downgrade of its credit ratings would trigger additional collateral or termination payments of $1.3 and 2.2-B, respectively, little changed from the $1.3 and 2.18-B the firm said it would need as of the end of Q-4.
An estimate of reasonably possible legal losses was $2.7-Bin Q-1, up from $2.4-B at the end of Q-4.
The firm previously disclosed that is has been subject to investigations and reviews by various governmental and regulatory bodies and self-regulatory organizations in connection with its transactions with the Greek government, including financing and swap transactions.
Thursday's filing said the investigations also included trading and research activities with respect to Greek sovereign debt. Goldman said it is cooperating with the reviews and investigations.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.