Goldman reconsiders services it offers to hedge funds

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

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.