The black box within Goldman Sachs blew a fuse on Tuesday.
MarketWatch reports that the opaque stock and debt holdings that make up the bank's Investing & Lending activities have long been a source of both big gains and deep shareholder angst. Their performance played a major role in the Wall Street firm's failure to hit analysts' revenue targets last quarter.
Net revenue generated by the $99bn portfolio of loans and securities fell 95% from a year earlier - to $87m from nearly $1.7bn a year earlier.
The size of the contraction underscored investor concerns about the wild swings and lack of transparency in this part of Goldman's business, in which the bank puts its own money at risk in everything from private-equity stakes to loans to wealthy clients.
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