Softer DFAST market shock favours Goldman but confounds comparability
Tweak to trading book test reveals widening gap between bank and Fed loss forecasts
Goldman Sachs’ estimate of its own trading and counterparty losses in the latest Dodd-Frank Act stress test (DFAST) were significantly higher than the regulators’, coinciding with a major overhaul of how dealers are tested for a severe market shock.
In its internal simulation, Goldman projected $3.7 billion in combined mark-to-market, hedging and counterparty credit losses. By contrast, the US
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