Goldman said to sustain big trading loss

No Pot Of Gold

It happens to the best of 'em.

Reuters reports that Goldman Sachs lost more than $1bn on currency trades during the third quarter, recent regulatory filings show, offering some insight into why the firm, considered one of Wall Street's most savvy traders, reported its worst quarter in a key trading unit since the financial crisis.

Foreign exchange was the only trading area that was a money loser, according to regulatory data. In the third quarter, Goldman reported its weakest revenue - $1.3bn - in fixed-income, currency and commodities trading since the height of the financial crisis.

Bloomberg reports that a structured options trade tied to the U.S. dollar and Japanese yen exacerbated the drop in the three-month period from the second quarter, the Wall Street Journal said Wednesday, citing people it didn’t identify.

The firm’s foreign exchange options desk posted a net loss, the newspaper said. It isn’t clear how large the trade was or how long it was in place, according to the report.

'Goldman Sachs did not suffer a(n overall) loss in our currencies business in the third quarter', Michael DuVally, a spokesman for the New York-based bank, said in an e-mailed statement. 'Gains or losses in one product type frequently offset gains or losses in other product types'.

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