Goldman Expects 35% of Revenues from Derivatives

August 8, 2010 Updated: August 11, 2010

Investment bank Goldman Sachs Group Inc. said late last week that up to 35 percent of its revenues may come from derivatives, according to a report by the Wall Street Journal citing insider information at the bank. Goldman, more than any other Wall Street bank, makes the majority of money from trading activities.

Last year, the firm generated $45 billion in total revenues. Derivatives are contracts, which derive their value from underlying securities, including stocks, bonds, mortgage-backed securities, or other assets. The latest Wall Street reform bill passed by the Obama Administration sought to restrict the trading activity of derivatives, citing their role in contributing to the financial crisis of 2008.