This is huge: Goldman is spinning out their prop trading unit, according to CNBC.It’s going to spin out into a hedge fund as early as this month.
The full details remain to be seen, but this we know: Goldman’s prop desk will become a spun-off hedge fund.
Goldman is already trading higher on the news.
Goldman’s spin-off announcement makes Goldman now the second bank to make plans to spin off a unit that employs prop trading, which is limited by new regulations detailed in the new financial reform bill.
And yesterday there was news that Goldman would probably spin off its PE unit. Should we expect more announcements like this to come?
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