Goldman Sachs: Secretive Proprietary Trading Unit

Bloomberg has discovered a secretive Goldman Sachs (Ticker: GS:NYSE) department called Multi-Strategy Investing (MSI) that has no clients and uses the bank’s funds to invest in stocks and bonds.

The unit seems to have smartly skirted the Volcker rule by position trading instead of day trading to comply with 60-day holding period so not to be classified as a short-term trading.

Our favourite quote from the article: 

“You don’t talk about what you’re doing,” she said.“It’s Goldman’s money, right?”

While MSI doesn’t trade in and out of positions on a daily basis, it sells most assets after a few months. The activities seem to somewhat fly in the face of Lloyd Blankfein’s assertion in July that Goldman no longer carries out proprietary trading. 

Read the full article here.