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JUL 21, 2010 12:00am ET

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Bad Bet Hit Goldman's 2Q Revenue, Profit

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Goldman Sachs lost its bet that stock market volatility would diminish in the second quarter, just as a gauge of equity price swings surged to a one-year high.

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The $25 billion mortgage robo-signing settlement is:
Political extortion from the banks in an election year
A slap on the wrist — the banks put reserves away for this long ago, they won't even feel it
A source of relief for both banks and homeowners that could help the housing market and economy recover
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