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Goldman denies $1B loss
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October 26, 1998: 5:11 a.m. ET
Investment bank says press report is just usual market "tittle-tattle"
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LONDON (CNNfn) - Goldman Sachs has denied a press report that it suffered huge trading losses during the recent turbulence in the world financial markets.
The U.K.'s Independent reported Monday that Goldman could be forced to post a fourth quarter loss of as much as $1 billion, although senior Goldman officials have repeatedly denied any problems.
A Goldman spokesman in London described the report as "the usual tittle-tattle coming from the market."
The paper quoted people inside the firm as saying Jon Corzine told staff that payments including bonuses would be cut to avoid job losses at the firm.
Goldman has claimed previously that its exposure to disasters such as the LTCM hedge fund collapse and Russian debt trading is limited.
The newspaper says there is a conflict within the firm over whether to come clean publicly over losses or to swallow the pain and use the current upheaval in investment banking to grab market share from troubled rivals.
Goldman recently canceled plans to list on the New York Stock Exchange. It also named a large number of employees who will be promoted to partners. Bonuses to employees are likely to be severely reduced, however.
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Goldman Sachs
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