Goldman Sachs, Hedge Funds Caught On Wrong Side of Swiss Franc Trade

When a central bank move surprises the elite stratosphere and top level banking executives are caught flatfooted, that in itself is news. Goldman Sachs shocked with SNB’s decision Such is apparently the case as the Goldman Sachs, whose alumni sit in top economic perches around the world, as the investment bank was caught flatfooted along with many other institutional investors who expressed “surprise” at a Swiss central bank move that jolted markets. When the Swiss National Bank yesterday eliminated the exchange rate floor of 1.20 on the value of the Swiss Franc relative to the Euro currency (the EUR/CHF spread),…