Goldman Sachs CFO David Viniar is down in Miami for a conference hosted by Credit Suisse.Today he mused on Goldman’s pre-crisis acquistions and about lessons gleaned from the fallout of the market crash, Bloomberg reports (via DB).
He’s also basically said that Blankfein and co. aren’t too worried about the impact of the Volcker rule.
Whatever effects there have been, you’ve seen already.
We don’t see that big of an effect from the Volcker rule on our revenues.
In the first point, he’s referring to the massive outflow of prop traders from Goldman we’ve seen recently. Most have gone to work for hedge funds, some went to KKR, and others have started their own funds.
As for the second, of course they’re not concerned — Goldman (and other banks) have already figured out how to exploit the Volcker loophole, and transported their remaining prop traders into client-based units.
Just because Goldman has shut down some prop trading desks, doesn’t mean they’ve shut down the practice of trading with the bank’s cash altogether. And bankers haven’t been quiet about their intention to take on proprietary positions without breaking the new rules.
Viniar also acknowledged the bank was “buying more illiquid assets than we probably should have,” before the collapse in 2008, but in any event, “it was a good lesson learned.”
Related: Click here to see how Goldman plans to circumvent the Volcker Rule >