How Did the Big Banks Really Score 100% Profitable Trading Days Last Quarter?

100522 Perfect Quarter for GS
The numbers are incredible.  Goldman Sachs just revealed in an SEC filing that its traders made money on every single
trading day last quarter, a record for the firm. Net revenue for
trading was $25 million or higher in all of the first quarter’s 63
trading days with 35 of those days bringing in more $100 million. 

Even if you had a 95% likelihood of a winning day, you would have
only a 3.9% chance of doing it 63 trading sessions in a row. 

Does a Perfect Trading Quarter Score One for the Rigged-Market Theory?

Whatever the cause of the perfect quarter, it comes as part of a
pattern. Goldman Sachs only recorded 11 loss days in the prior 12 months. So while some luck is
involved in stringing together a perfect Quarter, the trend of success does not seem to be a fluke.

It gets more curious, because it wasn't just Goldman.  Bank of America, Citigroup, and JPMorgan each also recorded a perfect quarter of trading profits.  What are the odds of that happening?  Apparently, pretty high under their current operating conditions.

When the government is on a mission, you may not like the policies … but as an investor, you fight it at your peril. More simply put, don't fight the Fed. 

It looks like the Banks figured that out. 

Goldman figured it out sooner.

100522 Cartoon - Goldman A Quick Study

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