Under investor pressure, Goldman to explain trading strategy

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N) will detail plans to turn around performance at its core bond-trading unit next month after unusual pressure from large investors frustrated by vague explanations of its troubles, people familiar with the matter told Reuters.

The move is a break from tradition at Wall Street’s pre-eminent bank, which usually gives its investors little information about how it makes money.

That was the case last month, when Goldman reported a stunning 40-percent decline in bond-trading revenue, much worse than rivals like Morgan Stanley (MS.N) and JPMorgan Chase & Co (JPM.N).

Goldman Chief Financial Officer Marty Chavez said Goldman had trouble “navigating” the markets during a conference call to discuss second-quarter results on July 18, but did not offer specifics.

Source: Reuters

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