Goldman Said to Get Burned in Rare Trading Miss

The transcript discusses why Goldman Sachs was more affected than other banks due to its large positions in distressed trading, particularly with Peabody Energy. It highlights Goldman's significant investment in Peabody Energy, which was much larger than other bond dealers. The discussion also touches on the Volcker Rule, which restricts proprietary trading, and how banks navigate these regulations.

Why was Goldman Sachs more affected than other banks in distressed trading during 2017?

• They had no distressed trading desk.

• They avoided energy companies entirely.

• They took larger positions in distressed assets.

• They had fewer resources than other banks.

What was surprising about Goldman Sachs' position in Peabody Energy?

• They only invested in stocks, not bonds.

• They had no position in Peabody Energy.

• It was 10 times larger than other bond dealers.

• It was smaller than expected.

Who led the distressed trading desk at Goldman Sachs during the Peabody Energy investment?

• Laura Volcker

• Mark Savarese

• Adam Savarese

• Bonnie Peabody

What does the Volcker Rule restrict banks from doing?

• Investing in foreign markets

• Hiring external consultants

• Merging with other banks

• Trading for their own profit

How do some banks justify holding certain bonds despite the Volcker Rule?

• By claiming future demand will require them

• By arguing they are for educational use

• By stating they are for personal investment

• By saying they are for charity purposes