Goldman Sachs made $200 million in paper gains from shrewd investments as the US went into deep freeze in February, new report finds

Goldman Sachs made $200 million in paper gains from shrewd investments as the US went into deep freeze in February, new report finds

The deep freeze in Texas that left most of the state without power and threw energy markets into turmoil last month has resulted in significant paper gains for Goldman Sachs Group, according to reports from Bloomberg.

If the investment bank collects, it could gain more than $200 million from both the physical sale of power and natural gas, and the financial hedges after spot prices surged, Bloomberg revealed.

But the potential gains remain in question, especially with energy companies at the brink of bankruptcy, pushing the government to intervene. Some executives told Bloomberg that they may not even realize half of the gains currently on paper. 

Bank of America, another bank that stands to benefit from the crisis in the Lone Star State, reportedly gained hundreds of millions of dollars in trading revenue, according to the Financial Times.  

The gains of both banks underscore the contrasting effect brought on by the event, upending living conditions for millions of Americans while Wall Street profited. 

Bank of America's Houston-based energy trading group, the Financial Times reported, had electricity contracts that spiked when wholesale power prices jumped 10,000% during the third week of February. 

While Bank of America declined to reveal the revenue it gained from the blackout, it