Sunday, 24 May 2015
Last updated 1 day ago
Sep 7 2010 | 8:30am ET
Goldman Sachs’ proprietary trading business—the cradle of many of the world’s most successful hedge fund managers—will close to comply with new U.S. financial regulations, but not before spawning another hedge fund or two.
New York-based Goldman has decided to shut down its Principal Strategies group, which accounts for some 10% of its annual revenue, following the enactment of the Volcker rule, which bars banks from proprietary trading. Firms have up to four years to comply, and Goldman will hold off on announcing the closure to give the roughly 70 members of its team time to find new jobs.
Some of those traders will undoubtedly remain with Goldman. Some others—members of the Asia team—are likely to join a hedge fund founded by Morgan Sze, the head of Goldman’s Asia prop. desk. The New York-based prop. traders are in talks to join an asset management firm, Bloomberg News reports.
Early reports indicated that Goldman might spin-off the Principal Strategies division as a hedge fund, although it appears that was never a serious option. Plans to spin-off Sze’s Asia team as a separate hedge fund also went nowhere.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…