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Sina Finance YORK, Sept. 4 morning news, according to two sources familiar with the matter said the U.S. government to comply with new regulations designed to control risk, Goldman Sachs Group (GS) will close its proprietary trading business Principal Strategies.
According to Bloomberg news agency reported, from the two anonymous sources, Goldman Sachs announced doesn’t plan to announce to close the department, and said the sector from 65 to 70 employees will find a new job. Sources said some of the sector traders and support staff may be other positions within Goldman Sachs, while the Asian market, a team may raise money to create a new hedge fund.
Goldman Sachs spokesman Ed – Cannady (Ed Canaday) said he could not comment on this news.
The so-called “proprietary trading“, also known as “professional-style securities transaction” refers to the company’s recruitment of professional securities traders, traders with the company’s funds to buy and sell securities, and the company provided to traders with efficient, dedicated fiber optic cable lines and servers, and together with the perfect computer and software to enable electronic trading network through several instant access to the securities market.
According to the United States President Barack – Barack Obama (Barack Obama) in July this year signed legislation to officially “Dodd – Frank Act”, Goldman Sachs and other banks are prohibited from engaging in proprietary trading business.
According to the U.S. Davis Polk & Wardwell LLP proposed timetable shows that “Dodd – Frank Act” at least four years to allow banks to proprietary trading in line with the requirements of the Act, and may further extend up to three years. Under the bill, the so-called “Volcker rule” , banks will be allowed to hedge funds or private equity funds in the possession of up to 3% of the shares.
Tags: banks, Dodd - Frank Act, Goldman Sachs, GS, proprietary trading, spokesman, Volcker rule
