Thursday, November 15, 2012

Goldman Wonders About A Leaner Future...



Goldman Sachs is looking for fewer touches, at least in one sense.  The firm is relying more on technology and reducing expenses as it contends with new regulations and an uncertain market, said CEO Lloyd C. Blankfein, at the Bank of America Merrill Lynch Banking & Financial Services Conference in Manhattan....

In the firm’s equities business, for instance, Mr. Blankfein said that 60 to 70 percent of shares are now traded through “low-touch” channels, without the direct involvement of people. Electronic execution accounts for significant portions of activity in the firm’s cash fixed-income business as well, Mr. Blankfein said at the conference, which is intended to give Wall Street analysts a broad look at the industry.

He spoke about the new Basel rules, which would require big financial institutions to hold more capital against their assets. Those requirements, Mr. Blankfein said, are forcing institutions to become more “disciplined” in how they allocate resources….

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