At a recent conference, Goldman Sachs (GS) CFO David Viniar warned that it’s unrealistic for the firm to change away from its bank holding company status.Well, Paul Volcker has a message for the bank: tough luck.
In an interview with FT, the Obama advisor indicated there was no reason for Goldman to be exempt.
“The implication for Goldman Sachs or any other institution is, do you want to be a bank?… If you don’t want to follow those [banking] rules, you want to go out and do a lot of proprietary stuff, fine, but don’t do it with a banking licence.”
There had been some chatter that since Goldman didn’t take deposits that it would be exempt, but obviously Volcker doesn’t see it that way, which is great, because taking deposits is not the determinant of who is Too Big To Fail.
That being said, it’s bizarre we’re getting definitions about the Volcker Rule drip-by-drip in interviews rather than, say, an actual description of the bill.