Goldman reconsiders services it offers to hedge funds


Goldman Sachs (NYSE:GS) is shifting its business structure with hedge funds, abandoning less-profitable clients and increasing some fees on others as it adapts to new banking rules.

Ever-increasing regulations on Wall Street have forced the bank to set aside more capital, triggering Goldman to even pull the firm's own cash out of its largest internal hedge fund.

Larger capital requirements continue to cause Goldman and many other banks to squeeze more out of client relationships, charging clients more to finance trades and adding monthly fees, as they face shareholder demand to keep up their same high returns.

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Comments (3)
  • swaps
    , contributor
    Comments (1575) | Send Message
     
    This account notes:

     

    "as they face shareholder demand to keep up their same high returns."

     

    Over a recent ten year period GS common stock rose only 30 percent. LOL
    5 Aug 2014, 07:12 AM Reply Like
  • Edward Ulysses Cate
    , contributor
    Comments (80) | Send Message
     
    I suspect this is a very serious warning. Remember back when Bear Stearns kicked off the whole financial collapse by liquidating a small hedge fund.
    Bear Stearns to Liquidate Bond Hedge Fund, People Say
    http://bloom.bg/1v6RnFZ
    Like knocking a few rocks over the edge of a mountain that starts a rock slide that ends up obliterating the whole town. Not by accident, either.
    Got gold or silver in your pockets???
    5 Aug 2014, 11:55 AM Reply Like
  • beachpipers
    , contributor
    Comments (188) | Send Message
     
    I believe Goldman was one of the biggest causes of the financial crisis and they can't afford to be publicly there going forward. However, I don't see a lot of credibility here. Since a leopard can't change it's spots, I'm sure they'll find another way to do more of the same without hanging a sign out front. When people think of America, they think of the leadership residing in the White House or Washington. Make no mistake, the real leadership in this country resides on Wall Street and has no rules. Behind closed doors, their core business will always make them more of a hedge fund then investment bank in my mind.
    5 Aug 2014, 06:55 PM Reply Like
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