Goldman Suffers Highly Un-Goldman-like Loss Of Confidence

It's disturbing for all of us.
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By Youngking11 (Own work) [CC BY-SA 3.0], via Wikimedia Commons

via Wikimedia Commons

There may have been some misinterpretation of divine guidance at 200 West Street, because the GSers are suddenly not so sure they’ll be able to get rid of $7 billion in hedge fund and private equity investments Paul Volcker says they can’t have anymore in the next 11 months. What they are sure about is that they’ll be allowed to blow that deadline with nary a consequence.

The bank had said in a March securities filing that it “expects to be able to exit the majority of such interests in these funds in orderly transactions prior to July 2017,” the deadline set by regulators as part of the Volcker rule.

The line, however, was removed from Goldman’s second-quarter financial statement, filed Thursday. A person familiar with the matter said Goldman isn’t sure it will be able to meet the 2017 deadline, but expects some flexibility with regulators….

“If you go back to the genesis [of] Volcker, it wasn’t designed to force fire sales,” Chief Financial Officer Harvey Schwartz told analysts last month. “So the industry, again, has been working with the regulators through various bodies, and we’ll see how the regulators finally respond to that.”

Goldman Questions How Quickly It Can Unload Private-Equity Holdings [WSJ]

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