Goldman Sachs president and COO Gary Cohn told Bloomberg TV’s Stephanie Ruhle on “Market Makers” today that he doesn’t know what drove the firm’s underperformance in fixed-income trading in the third quarter:
“We don’t know precisely why we had a tough quarter, but the results are in, and I can tell you we had a tough quarter in fixed-income…We’re very committed, we’re going to redouble or triple our efforts in fixed-income. We believe ourselves to be a very powerful, very dominant, top-tier fixed-income shop.”
Cohn said that Fed stimulus still makes sense for the economy:
“If you look at where we are economically, versus where we were a year ago, we’re virtually in the exact same place…So if quantitative easing made sense a year ago, it probably still makes sense now.
source: Bloomberg Television
“We’re not looking at their portfolio. Some of our clients are looking at their portfolio and some of our clients can potentially ask us for help on looking at some of the long-dated derivatives. We’re more than happy to help facilitate our clients, but we’re not going to buy the business directly from JPMorgan.”