Goldman Sachs braces for US downgrade losses

US investment bank Goldman Sachs has warned its shareholders that the loss of the United States's AAA credit rating could have a "material and adverse" impact on financial results. In its quarterly report released Tuesday, Goldman Sachs drew attention to Standard & Poor's downgrade of the US credit rating to AA+ on Friday, and then on Monday of other bonds linked to the federal government. "These actions initially have had an adverse effect on financial markets and although we are unable to predict the longer-term impact on such markets and the participants therein, it might be material and adverse," the report said. The firm had a relatively poor second quarter. It had 15 days of losses in in activities on its own account, including a one day loss of more than 100 million dollars, and 48 days of gains, including four of more than 100 million dollars, it said. Goldman Sachs shares ended the day up 4.31 percent Tuesday, at 122.73. It is down 27 percent since the start of the year.