Banks

Goldman Sachs Redefining Customer Service

Ask not what Goldman Sachs can do for you. Ask what your hedge fund can do for Goldman Sachs and its leverage ratio. For instance, perhaps you’d like to pay some extra fees on that untapped credit line, or withdraw that money you’ve just got sitting uselessly in your Goldman account? Perhaps you wouldn’t mind forking over a few more bucks for trade financing? Maybe, if you’d be so kind, you could just go away entirely?

In some cases, Goldman has stopped serving clients that produce little or no returns for the firm…..

In recent months, Goldman’s prime-brokerage unit has been contacting hedge-fund clients to inform them that it now evaluates their business based on the return on assets it produces for Goldman, according to people familiar with the matter. Historically, banks had valued their clients primarily on the revenue they brought in.

Goldman Sachs Cuts Roster of Hedge-Fund Clients [WSJ]

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2 Responses to “Goldman Sachs Redefining Customer Service”

  1. Pepe Le Tool says:

    BNP is getting rid of its 3 clients. Same with UBS and CS. Im sure Goldman will be fine

  2. HighFrequencyHater says:

    Yikes, next thing you know they'll be looking at things like RORAC like a normal bank.