Softer DFAST market shock favours Goldman but confounds comparability

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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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