Goldman Sachs is shutting down its global macro proprietary trading desk, The Wall Street Journal reports. The trading desk made bets with Goldman’s capital in foreign-exchange markets, interest-rate markets, stocks, commodities and other fixed-income markets.
Goldman’s eight-person trading desk team, including Karl Devine, who ran the four-person staff in London, and others on his staff are leaving and are in talks with London-based hedge funds, including Brevan Howard. The move comes as Goldman is seeking to comply with a provision of the Dodd-Frank financial overhaul law intended to curb the ability of banks to take risks with their own capital.
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