Why did the european debt crisis affect goldman sachs and cause them to post a loss in the third quarter?

I am looking for economic, specific reasons that the European debt crisis has affected Goldman Sachs, as well as the other markets in the US. I know that Goldman invests in Europe, but I am looking for more specific reasons.|||"Goldman relies heavily on market-driven investment banking services, such as trading bonds and underwriting companies' stock offerings, for its revenue. It doesn't have the same level of plain-vanilla borrowing and lending to fall back on when the investment banking operations falter."





and





"Goldman's losses in the third quarter included losses of $1.1 billion on its stake in the Industrial and Commercial Bank of China, $1 billion on other stock holdings and $907 million from bonds and loans."





Above from: http://www.thereporter.com/business/ci_1鈥?/a>





Essentially, the weight (on the markets) of the European debt crisis is causing significant volatility in markets world-wide. With volatility comes fear, and with that - fewer IPOs, etc..i.e. fewer users of Goldman Sach's primary money maker %26gt; investment banking services.





...and from here:http://www.telegraph.co.uk/finance/newsb鈥?/a>





"Like its competitors, Goldman saw revenues from bond and currency trading tumble as investors took risk off the table during a summer marked by an escalation in Europe's debt crisis, a slowing US economy and the debt ceiling debacle in Washington....


Revenues at its Fixed Income, Currency and Commodities division sank 36pc to $1.73bn compared with the same period in 2010. "





Not much, but hope it helps...|||Because Goldman Sachs invests heavily in Europe. When the European economic goes ca-put, Goldman Sachs goes down with it.