Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Goldman poised to make $100 million profit off Texas deep freeze - Bloomberg News

03/05/2021 | 09:05pm EDT
FILE PHOTO: A sign is displayed in the reception of Goldman Sachs in Sydney

(Reuters) - Traders at Goldman Sachs Group Inc could earn roughly $100 million in profit from the winter storm last month that left many across Texas and other southern U.S. states without electricity, clean water and heat, Bloomberg News reported on Friday.

The Wall Street bank's earnings from the physical sale of power and natural gas and financial hedges after spot prices jumped, could top $200 million on paper, but they will likely take a significant write down, Bloomberg reported.

Texas's energy market saw extreme volatility in mid-February when a deep freeze reduced supplies, sending the cost of emergency fuel and power sky high. With bills now coming due, many energy companies are expected to file for bankruptcy or seek regulatory or legal remedies to put off payment.

"The polar vortex drove volatility in energy markets, and, as a market-maker and liquidity provider, we were positioned to help our clients manage their risks in that challenging environment," said a Goldman Sachs spokeswoman in an emailed statement.

Bank of America also stands to make hundreds of millions of dollars from trades related to Texas's energy market, the Financial Times reported Friday. That bank said any revenue will be offset by losses and reduced investments that resulted from business the bank has with other energy sources in Texas.

(Reporting by Sohini Podder in Bengaluru; Editing by Shailesh Kuber and Steve Orlofsky)

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BANK OF AMERICA CORPORATION 0.05% 39.17 Delayed Quote.29.23%
THE GOLDMAN SACHS GROUP, INC. 0.23% 343.09 Delayed Quote.30.10%
Latest news "Economy & Forex"
02:16aUK jobless rate unexpectedly falls again
02:10aBODYCOTE  : Notice of AGM and AGM Details
02:05aBOJ warns low rates, structural woes to hurt banks even after pandemic subsides
02:02aUK jobless rate unexpectedly falls to 4.9%
02:02aAsian shares at highest since early March, weak dollar boosts commodities
01:58aAsian shares at highest since early March, weak dollar boosts commodities
01:49aJapan's Subaru to suspend production in Indiana on chip shortage
01:46aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE  : 5G industry creates massive direct economic output
01:42aBOJ seen slashing inflation forecast for this fiscal year - sources
01:37aChina's market regulator investigates Alibaba-Minmetals JV
Latest news "Economy & Forex"