Goldman Sachs Said to Shut Principal Strategies Unit
Goldman Sachs Group Inc. is disbanding its principal-strategies business, one of the groups that makes bets with the firm’s own money, to comply with new U.S. rules aimed at curbing risk, two people with knowledge of the decision said.
Wall Street’s most profitable investment bank plans to hold off on announcing the wind-down while the 65 to 70 members of the global unit seek new jobs, the people said, speaking anonymously because the internal discussions about the process are confidential. Some traders and support staff may get roles within the New York-based firm, while a team in Asia may raise money for a new hedge fund, the people said.
“The Dodd-Frank bill caused them to have some damage to the business here and they said it’s done, let’s get rid of it,” Michael Holland, who oversees more than $4 billion as chairman of Holland & Co. in New York, told Bloomberg Television. “They’re saying, ‘We don’t want these people to be worrying about what they’re going to be doing a couple of years from now, we’re just going to get rid of the uncertainty.”
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