NEW YORK: Goldman Sachs Group Inc’s commodities business, once the crown jewel of its trading operation, is rediscovering its old touch in turbulent markets.
The unprecedented mayhem in oil markets sent crude plunging below zero, left corporate risk managers scrambling and forced retail investors to unwind bets.The windfall is a redemption for the unit, which less than two years ago faced an uncertain future under new boss David Solomon, who frowned upon a business that wasn’t making enough money.
Some of Goldman’s early gains from that turmoil were under Xiao. The Singapore-based partner, known as QX to colleagues, oversees the commodities business in Asia. That move prompted a wave of forced selling from investor products such as exchange-traded funds that weren’t designed with the possibility of negative prices in mind.Stiffer rules aimed at reducing risks after the 2008 crisis mean banks are no longer allowed to have dedicated proprietary-trading teams.
Goldman always seem to profit during slumps 🤔. Last time during subprime as well. They must have a good system
Someone somewhere is losing big money.