Update: Goldman Sachs May Spin Off Part of Trading Unit Friday (GS)
Goldman Sachs (NYSE: GS) may spin off part of its proprietary trading operations into an independent hedge fund as soon as Friday, people familiar with the matter told CNBC.
The move would speed up the company's move to comply with new financial regulations limiting Wall Street firms from betting their own money in financial markets.
Though specifics remain murky, Goldman Sachs plans to first spin off its Principal Strategies Unit (GSPS) from its Equities Division, according to CNBC. Other parts of the business, such as its Special Situations Group (SSG), are farther away from a finalized solution.
The possibility that Goldman Sachs could spin off part or all of its proprietary trading unit was first reported by CNBC's Kate Kelly on Wednesday.
Dick Bove, a widely followed bank analyst at Rochdale Securities, told CNBC Wednesday that Goldman Sachs could actually make more money under the new financial rules.
"This financial regulation bill is giving Goldman Sachs tremendous advantages, which will enhance their earnings growth," Bove said in an on-air telephone interview.
Shares of Goldman Sachs are down 0.8% Thursday, to $155.12.
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