According to HuffPo more than a dozen traders have quit Goldman Sachs Group Inc's (GS.N) North American government bonds and derivatives trading desk in New York in recent months as the bank takes fewer risks and big bonuses for ambitious traders dry up.
Goldman has been handing out promotions and better pay to its salespeople, rather than the traders who manage the bank's inventory of securities and derivatives, people familiar with the bank's operations said.The changes reflect Goldman's shift toward client trading and away from making money by betting for its own account, those sources said. Weak trading in general has compounded Goldman's difficulties as it struggles to earn profits from clients without the help of its market bets, analysts said.
It makes sense for Goldman management to reward sales staff over traders these days, said Susquehanna Financial Group analyst David Hilder. "The client franchise is paramount," said Hilder. "You need sales people to deal with and talk to the clients. Over the long term, that's more important than a few guys trading bonds……"
Read more at http://www.huffingtonpost.com/2011/07/28/goldman-sachs-traders-qui_n_912786.html
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