President Obama's ban on proprietary trading applies to trading unrelated to client business. Many of Goldman's clients are its own current and former employees. And, much of its trading takes place within internal funds that allow participation by those clients. So is this a loophole Goldman will be able to use to skirt the rules banning proprietary trading?
A strict reading of Obama's proposal would suggest this is a stretch, but Goldman's middle name is "Stretch". Stay tuned.
No comments:
Post a Comment