Goldman prop trading unit to become fund
Though you guys might find this article interesting because there has been a lot of debate as to what the big firms would do with their prop desks... Taken from this article (for more click the link) http://www.reuters.com/article/idUSTRE6743IS20100… Goldman Sachs Group Inc is planning to shift its principal strategies business into a fund that raises outside money, Bloomberg reported on Thursday, citing a source with direct knowledge of the plan.
The unit makes bets with the company's own capital, and Goldman may announce as soon as Friday plans to separate the business from the bank's equities unit, Bloomberg reported.
The move would be one of the first major spin-offs by a large U.S. bank in the wake of Congress passing its financial regulation overhaul, known as the Dodd-Frank Act, in July.
No surprise there. But not really a 'spin-off' in the strictest sense. But once you start having clients you need to up your reporting standards, and also the risk factor is different. Be interesting to see how this will pan out with investors. But hell, GS is a strong name (trading wise) and thye'll get good traction in the market.
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