Trading losses cancel out Goldman’s revenue in 2024 stress test
Bank hit hardest among those tested for market shock and counterparty default
Goldman Sachs faced substantial simulated trading and counterparty losses that would wipe out its revenue in this year’s Dodd-Frank Act stress test (DFAST), underscoring the ongoing challenge the bank faces in transitioning to a more fee-based and less capital-intensive balance sheet.
Over the US Federal Reserve’s nine-quarter recession scenario, Goldman was forecast to accumulate $18 billion in losses from mark-to-market, counterparty credit and other trading-related exposures – the highest
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