Tuesday, July 19, 2011

Visualizing Goldman's Epic Meltdown

by Tyler Durden

No point in discussing Goldman's abysmal earnings. Here is the chart that says it all.

Total Revenue by Segment - this is the worst quarterly revenue for the firm in years. The biggest loser:
Institutional client flow AND Prop (Investing and Lending).


In tabular format. 


At least the compenstation expense margin is a nice and sold mid-40%. As for those 35,500 staffers at the end of the period: that's number is going down.

The reason for all of this - the massive collapse in VaR, as Goldman somehow loses its edge which oddly parallels the unwind of the firm's prop trading division... Gee, we wonder why.



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