Wednesday, 23 July 2014
Last updated 1 hour ago
Aug 9 2010 | 2:09pm ET
Add Bank of America to the list of big banks mulling the future of their proprietary trading operations.
BofA may either sell the $3 billion desk or move its traders to other parts of the company, The Wall Street Journal reports. Among the potential buyers of the business could be a private equity firm or hedge fund, according to the Journal.
The Charlotte, N.C.-based firm inherited the prop. desk, led by David Sobotka, when it acquired Merrill Lynch last year.
Under the recently-enacted Volcker rule, banks have four years to divest themselves of their proprietary trading operations. Two other prominent firms are reportedly close to a decision, with Morgan Stanley mulling a spin-off as a hedge fund and Goldman Sachs likely to simply close its desk.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…