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Goldman Sachs - Risk is Good

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NY Times is reporting that despite claims of reform and tighter controls on the banking system, Goldman Sachs (the Treasury Department's default talent pool) has actually increased its Value at Risk numbers since the beginning of the crisis.

A brief glance at a metric known as VAR or “value at risk,” which ostensibly measures the amount of money an institution could lose on any given day or week, shows that at some firms that number is way up. At Goldman Sachs, for example, the firm’s value at risk has risen from $240 million in the first quarter to $245 million. But the bigger leap is from February 2008, just a month before Bear Stearns was sold to JPMorgan Chase, when Goldman’s VAR stood at only $127 million. As a result, in part, it has recorded some of its most profitable trades in its history.

Goldman comes right out and says our business model has not changed. You have to admire honesty.