Re:Goldman Sachs Recasts Its Reputation to Woo Tech Talent
by kasey_junk on Friday November 14, 2014 @08:23AM
(#8606955)
Algo trading is a vanishingly small segment of the finance industry & a very small part of what an ibank like GS does. I don't have references to back this up, but I wouldn't be surprised if they have single derivatives deals that are more profitable than their entire HFT operation. Like most big deals the "sales" side makes the money in those.
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Re:Goldman Sachs Recasts Its Reputation to Woo Tech Talent
by justincormack on Friday November 14, 2014 @08:42AM
(#8607029)
Well so far extracting money from dumb customers is still an excellent business to be in. eg charging $47m for a spreadsheet with a $100m error [1] or helping Libya invest its money in trades that soon became worthless[2]. It is hard to make money like that from trading alone with such low risk.
But Goldman can see the writing on the wall, and now has 25% of its staff in tech, because the markets are changing fast. Stupid people will still make up much of the revenue stream for a long time though, and large companies that like to pay large sums.
[1] http://blogs.wsj.com/moneybeat/2014/10/16/spreadsheet-mistak...
[2] http://www.theguardian.com/business/2014/oct/06/goldman-sach...