Goldman hit by short equity volatility position

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Goldman Sachs' profits from equity trading fell almost 90% year-on-year after stocks endured a torrid time in May. The bank had been positioned to profit from calmer markets, in part as a result of clients seeking to hedge against higher volatility. "As a result of meeting franchise client and broader market needs, we had a short equity volatility position going into the quarter. Given the spikes in volatility that occurred during the quarter, equity derivatives posted poor quarterly results,