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Actionable news in GS: GOLDMAN SACHS GROUP Inc,

Goldman: 'We need to do better' after 'worst quarter ever' for trading

Goldman Sachs' trading problem is even worse than what has befallen the rest of Wall Street — so bad that the company recorded its worst commodities quarter on record.

The trading issue has gotten so pronounced that even a quarter when the investment banking behemoth surprised analysts with a stronger profit than the year-ago period, it wasn't enough to keep the stock from falling.

That's primarily because a core of Goldman's existence — trading, particularly in the fixed income, currencies and commodities area — is falling at a rate greater than any of its peers. Trading revenue in general declined 18 percent in the second quarter, and FICC specifically fell a jaw-dropping 40 percent.

Commodity weakness helped drive the decline, registering an unprecedentedly poor performance.

"We are a market leader in commodities, but it was a challenging environment on multiple fronts," Martin Chavez, Goldman's chief financial officer, said on a conference call with analysts.

"We can have a great asset manager franchise and a great corporate franchise and [we're] working on both," he added later. "This is...


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