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Goldman Moves UK Office to US - You Won't Like Why

GS moves Fund Client Business from London to the US. That makes No Sense.

Via Soren K. and MarketSlant

  • Question: Why is GS London leaving the UK, moving to the US, and not Germany or Paris?
  • Answer: Not Brexit. Nope. It's because Dodd-Frank is getting rolled back. Prop trading is back folks. Because our government is stupid. Finally, The Donald is looking more and more like a Bush Brother, namely Jeb. Love the Squid. 

Comments from  Energy Trader and Marketmaker Background Sources

Energy Trader- That's awesome! Now we can look forward to the financial meltdown 2.0!

Market-Maker w/o Client Flow-It's so obvious to guys like us. Other banks staying in time zone.. GS moving hedgies next door to their rehired prop desks I bet. Buy GS stock and short EU banks now!

From Reuters

A Goldman spokesman confirmed the move but not the details, adding that   the reasons for the staff shift were not related to Brexit.  "This is a discrete decision for reasons specific to GSIP.."

The Financial Abattoir has been (Re)Opened 

Many Prop desks at banks like GS were jettisoned due to Dodd-Frank. So the banks made passive hedge fund investments in those "new client" prop trading funds created by former employees. Then they filled their other ("muppet") client orders at the new client hedge funds. And they earned profits off of those "outsourced orders". Thank G-d they can stop that now. Finally they can front run without guilt again. MAGA for Business!

Of course this is entirely our opinion. Lacking concrete facts we cannot make this conjecture stick. In an age of facts as necessary to prove truth, we are righteously protected from rumor-mongering and raw speculation this way. But who controls the facts now?  Facts are not available to us. They are "proprietary" and "industry secrets" like predatory algorithms and such. No facts, no crime. Meanwhile, we are kept in the dark and fed a load of sh@t.  Apparently the duck has to be caught with a knife at your throat before the evidence is worth checking out. Trade accordingly.

Also keep in mind that many banks are lining their compliance up with the US now, as they see the EU adopting US standards. And those standards are about to get loose again. So, we guess its safe to act as counterparty to your own client again. Welcome to the abattoir. Here is what Reuters has to say.

Goldman hedge fund folding London operations, shifting staff to U.S.: sources

Via Maiya Keidan and Olivia Oran ...About eight staff members who made up the London team were recently told to move to the Battery Park City headquarters of Goldman Sach Group Inc in lower Manhattan or find a new job internally, the sources said. A Goldman spokesman confirmed the move but not the details, adding that the reasons for the staff shift were not related to Brexit. "This is a discrete decision for reasons specific to GSIP, one investment team within Goldman Sachs, and shouldn’t be construed as anything but that," he said.

The firm had pulled out almost $3billion post the Dodd-Frank and Volcker rules, which restricted back-to-back prop trading. This could be because it was no longer able to make money front-running (sorry "mirror-trading") their muppet-base. The article continues

GSIP's assets fell in 2014 after Goldman pulled out $2.8 billion in response to the U.S. Dodd-Frank financial reform law and the Volcker rule, which restricted banks' proprietary trading. The fund now manages around $3.5 billion. Separately, Goldman may move up to 1,000 staff out of London in response to Britain's vote to leave the European Union, it was reported last month. Full story Reuters

TONIGHT: Trump Fireside Chat on 'Learning to Love the Squid'

h/t

MAGA is Good for American Business. But GFY if you are a taxpayer.- Love Donald Trump

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