Nothing's been decided yet but they're thinking things over at 200 West, lots and lots a things. Maybe they'll spin the unit into its own hedge fund. Maybe they'll move the prop team into the basement and keep them locked in there, like the third Olsen sister no one knows about. Eventually people will forget, until they're discovered, years later, in a raid by the NYPD. Maybe they'll do nothing (best place to hide is in plain sight). CNBC's Kate Kelly reports:
Goldman is seriously considering spinning off its proprietary trading unit or a significant portion of it as early as this month. They will take that unit out of the major bank and put it into another entity. Now details are not entirely clear. There are a couple of options on the table. One thing that Goldman and other banks are considering…is to seed a hedge fund staffed by former Goldman Sachs proprietary traders with Goldman money and replace it in the coming years with third party money. Another possibility is to potentially move it into their asset management unit and own the management but not seed it with Goldman money. They might also be moving some people around in Europe from London to Zurich where they have leased some office space…so they are playing with a bunch of different scenarios to deal with the tax situation in the UK as well as the Volcker rule in the US.