3 ms·
Except that, post Volcker, banks are prohibited from proprietary trading; and also except that there exist strong mandatory separations ("Chinese walls") betwee
by NovemberWhiskey 5y ago
Except that, post Volcker, banks are prohibited from proprietary trading; and also except that there exist strong mandatory separations ("Chinese walls") between investment research and the investment banking and trading parts of banks.
- dig1 5y agoAssuming they bought futures, "Goldman Sachs Futures Pte Ltd" is officially located in Singapore and Volcker Rule doesn't affect companies that are doing trades outside of US or makes trade decisions outside US. Volcker Rule does affect banks that are controlled by US banks, but if Goldman did paperwork correctly (of course they did), beside the name similarity, you won't be able to link it with US Goldman.
- beervirus 5y agoGS is an investment bank, not a commercial bank.
- NovemberWhiskey 5y agoGS is actually a bank holding company; I'm not sure what your comment is actually trying to say though - does it intend to contradict some part of what I wrote?
- beervirus 5y agoThe point is that they have an investment banking arm that is absolutely doing prop trading.
- a11r 5y agoThis stopped being true during the 2008 financial crisis. See https://www.marcus.com/us/en https://www.marcus.com/us/en .
- beervirus 5y agoOk, fine. They’re a bank holding company that includes an investment banking arm. That arm definitely does prop trading though, so my point stands.