Goldman's trader's massive profits complied with Volcker Rule, finds Goldman

|About: Goldman Sachs Group Inc. (GS)|By:, SA News Editor

Goldman Sachs (GS +0.6%) has conducted an internal review of transactions made by employee Thomas Malafronte, who generated a reported $250M in profit trading junk bonds this year, according to Bloomberg. The probe concluded Malafronte did not violate the so-called Volcker Rule.

The Volcker Rule was aimed at turning bank trading desks into no more than facilitators between buyers and sellers, but the line between that business and speculation can often be a difficult one to discern.

In addition to the big profit at Goldman's credit-trading group, a team of Citigroup traders on its U.S. dollar interest-rate swaps desk pulled down about $300M this year.