February's brutal, wintry blast means plenty of cold, hard cash for Wall Street traders.
Financial services company Goldman Sachs could receive a potential windfall of more than $200 million from the sale of gas and power from financial hedges after power prices skyrocketed amid the deep freeze in the South, according to insiders, reported Bloomberg News.
But collecting the cash could be challenging as some energy companies head for bankruptcy, including Brazos Electric Power Cooperative, which filed for Chapter 11 protection on March 1 after receiving a whopping bill from Texas' electricity grid operator, noted NPR.
"People are waiting for checks that aren't coming," said ClearTrace chief strategy officer Evan Caron.
Goldman Sachs executives claim that they might only be able to collect about half that amount, according to anonymous sources.
© THOMAS SHEAFebruary's winter storm that wreaked havoc in the South was a boon to several investment companies, notably Goldman Sachs.
February's winter storm that wreaked havoc in the South was a boon to several investment companies, notably Goldman Sachs. (THOMAS SHEA/)
Video: How Texas can avoid another power crisis (CNBC)
How Texas can avoid another power crisis
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The February storm that wreaked havoc on tens of millions of Americans, notably in Texas, killed 58 people in one week alone, according to The Washington Post.
The bone-chilling temperatures led to the freezing of pipelines, sweeping blackouts and ice-laden wind turbines.
Energy costs ballooned as power suppliers frantically grappled to meet demand. Gas prices traded at a whopping 300 times normal levels in Oklahoma, while in Texas, electricity costs swelled to a whopping $9,000 per megawatt-hour, noted Bloomberg.
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"The polar vortex drove volatility in energy markets, and, as a market-maker and liquidity provider, we were positioned to help our clients manage their risks in that challenging environment, said Goldman Sachs spokeswoman Maeve DuVally.
Also cashing in on the storm was Bank of America, which netted hundreds of millions of dollars in trading revenue, reported Financial Times on Friday.
Bank of America expanded into North American energy markets after acquiring the Merrill Lynch investment bank in 2009, noted Financial Times.