Goldman Sachs (GS: 148.10 ,+2.79 ,+1.92%), which once commanded the largest proprietary trading department on Wall Street, is in the initial phases of winding down billions of dollars in equity positions, the direct result of new regulatory rules designed to eliminate Wall Street risk taking, FOX Business Network has learned.
As first reported by FOX Business, Goldman's planned exit from the business of using its own capital to make stock market bets, also known as proprietary trading, involved moving traders to the asset management division where they would work with clients and trade stocks. That process continues, people close to the firm say, while other traders are in talks to join other firms such as the investment banking boutique run by Wall Street veteran Joseph Perella and Peter Weinberg, a former Goldman banker. Others may start their own hedge funds.
Full story: FOXBusiness.com – Goldman Said to be Winding Down Equity Prop Trading Desk