"Franchise feels good, we just had a tough quarter," says Goldman Sachs (GS -2.4%) CFO Harvey Schwartz on the company earnings call (still in Q&A, listen live here). Everyone knew trading revenue was set to take a hit at the big banks this quarter, but Goldman's 44% decline was especially bad (Citi fell 26%, BofA 20%, JPM 8%). Why?
Schwartz suggests it's the mix of clients: Goldman has more asset managers who pulled back from trading amid the volatility, while the others cater more to hedge funds who are less likely to shy away from action. "I don't want to sound defensive ... not a good quarter for us."
Earlier: Q3 results.