Does Goldman Sachs still have a prop trading department?

Following Dodd-Frankdo they still operate a speculation business? Would be interested to know if anyone has the knowledge.

Thanks

 

No. They closed it down a few years ago. The prop traders were all given gardening leave lol. A friend of mine (in London) was one of them.

 

thanks for the info, i thought this was the case. I read some of the traders went to trade for hedge funds with mixed results.

 

Their MSI dept under the Special Situations Group. Much smaller than before Volcker. All bets must be "long-term" in nature (>60 days).

 

I wonder if FX is being prop traded by banks under the radar of Volker. Would be interested to know.

 

A lot of prop has moved onto the customer desks.

 

Thanks for the info. Does that mean they no longer speculate and are just trading flow. Is the last bastion of speculation now at hedge funds.

 

No. The absolute dollars of speculation hasn't changed (except for the highly visible PE stuff). It's just hidden inside the flow books.

 

I am sending pm.

 

"Customer facilitation"