Goldman Sachs No Longer Clearing Trades For Peasants

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The scary thing is that they let it go on this long.

Goldman Sachs limited clearing for accounts that manage less than $5 million, lifting the previous $1 million threshold, said the people, who asked not to be identified because the decision was private. While the firm continues to clear trades for some accounts below the new limit, it’s winnowing out clients that are riskier, have lower growth prospects and are more retail rather than institutional in focus, one of the people said. “We are conducting a routine analysis of our business and in some cases the profile of clients was not consistent with our current standards and criteria,” said Ed Canaday, a spokesman for the New York-based bank. [Bloomberg]

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