Goldman poised to make $200 million profit off Texas deep freeze: Bloomberg News
March 5, 2021
(Reuters) – Traders at Goldman Sachs Group Inc may reap huge profits from the winter storm last month that left many across Texas and other southern U.S. states without electricity, clean water and heat, Bloomberg News reported on Friday.
The Wall Street bank could make up to $200 million from the physical sale of power and natural gas and from financial hedges after spot prices jumped, the report said, citing people familiar with the matter.
Goldman did not immediately respond to a Reuters request for comment.
Bloomberg reported that while the bank could make $200 million on paper, the actual profits collected are likely to be less, as regulators and consumers intervene with legal challenges in the aftermath of the energy crisis and some companies go bankrupt.
Bank of America also stands to make hundreds of millions of dollars from trades related to Texas’s energy market, the Financial Times reported Friday.
(Reporting by Sohini Podder in Bengaluru; Editing by Shailesh Kuber and Steve Orlofsky)