News - Investment
Investment banking giant Goldman Sachs has revealed for the first time a fresh loss of $5bn during the financial crisis.
In figures disclosed as part of internal reforms to mute critics, the investment banking giant revealed it suffered losses of $13.5bn from investing and lending with its own funds in 2008, the Financial Times reports.
However Goldman's regulatory filings, along with its comments to investors during that period showed losses amounted to around $8.5bn, stemming from investments in equity and debt.
The discrepancy in numbers - which do not affect the bank's overall results for 2008 - are due to the bank not revealing a full breakdown of profits and losses.
In a move diverging from other banks, however, Goldman disclosed for the first time the new category of ‘investing and lending' in its results.
While the Securities and Exchange Commission commended this new transparency, it calls for a further investigation into the bank's former disclosures.
Former chief accountant at the SEC Lynn Turner says: "This sets a good example that others should follow.
"But it does raise the question as to why the management did not provide this view back then and whether the SEC are going to do something about this discrepancy.
"For such a discrepancy to have arisen, management must have lost an eye."
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