Goldman Sachs, moving to comply with a new rule aimed at
reducing the riskiness of the country’s big banks, recently sold some of its
investments in hedge funds, according to Dealbook.
The Wall Street firm disclosed in a regulatory filing on
Thursday that it had sold $250 million worth of investments it had in hedge funds.
Typically, Goldman will invest in hedge funds alongside its clients, but new
regulations require the bank to reduce those holdings.
Banks have roughly two years to bring their businesses into
line with the so-called Volcker Rule, which aims to rein in risk-taking on Wall
Street by barring banks from placing bets with their own money. It will also
will reduce the amount of capital they can investment in sometimes risky
vehicles like hedge funds. Going forward, banks will be able to invest only
about 3 percent of their capital in hedge funds.
“The firm currently plans to comply with the Volcker Rule by
redeeming certain of its interests in hedge funds,” Goldman Sachs wrote in
filing, which outlines its business activities for the three months that ended
March 31…
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