Goldman Moves UK Office to US - You Won't Like Why

GS moves Fund Client Business from London to the US. That makes No Sense.

Ask yourself this: Why's GS London leaving the UK ,(Not Brexit) moving to the US, and not Germany or Paris?

Answer: Because Dodd-Frank is getting rolled back, Prop trading is back and clients will weep! Because our government is stupid. Finally, The Donald is looking more and more like a Bush Brother, namely Jeb. Love the squid. 

Comment from one Energy Trader: 

That's awesome! Now we can look forward to the financial meltdown 2.0!

From a marketmaker/Prop trader who does not have client order flow he can trade against ( i.e.Frontrun or Mirror-trade):

It's so obvious to guys like us. Other banks staying in time zone.. GS moving hedgies next door to their rehired prop desks I bet. Buy GS stock and short EU banks now!

From the Reuters article below:

A Goldman spokesman confirmed the move but not the details, adding that the reasons for the staff shift were not related to Brexit."This is a discrete decision for reasons specific to GSIP

Also keep in mind that many banks are lining their compliance up with the US now, as they see the EU adopting US standards. And those standards are about to get loose again.

So, we guess its safe to act as counterparty to your own client again!

TONIGHT: Trump Fireside Chat on 'Learning to Love the Squid'

h/t @Rudyhavenstein


The Financial Abattoir has been (Re)Opened 

Many Prop desks at banks like GS were jettisoned due to Dodd-Frank. So the banks made passive hedge fund investments in those "new client" prop trading funds created by former employees. Then they filled their other ("muppet") client orders at the new client hedge funds. And they earned profits off of those "outsourced orders". Thank G-d they can stop that now. Finally they can front run without guilt again. MAGA for Business! 

Of course this is entirely our opinion. Lacking concrete facts we a cannot make this conjecture stick. In an age of Facts as necessary to prove truth, we aer protected form rumor mongering and raw speculation. But who controls the facts now? Are you paying attention fellow mushrooms? Facts are not available to us. We are kept in the dark and fed a load of sh@t.  But I'll be damned if the duck has to cut my throat before I identify it as such. Trade accordingly

Goldman hedge fund folding London operations, shifting staff to U.S.: sources

Via Maiya Keidan and Olivia Oran 

About eight staff members who made up the London team were recently told to move to the Battery Park City headquarters of Goldman Sach Group Inc (GS.N) in lower Manhattan or find a new job internally, the sources said.

A Goldman spokesman confirmed the move but not the details, adding that the reasons for the staff shift were not related to Brexit.

"This is a discrete decision for reasons specific to GSIP, one investment team within Goldman Sachs, and shouldn’t be construed as anything but that," he said.

The move was triggered by managing director Nick Advani, who led the hedge fund's London operations, the sources said. He said in June he would be stepping down from his role, they said, requesting anonymity because they are not authorized to speak to the media.

Advani, now an advisory director at Goldman, did not respond to requests for comment. Advani is expected to leave the firm later this year, the sources said.

Managing director Raluca Ragab, who had been formally leading the London-based team since Advani's departure, will also leave Goldman once the move is complete, one of the sources said. Ragab's departure is for personal reasons, one of the sources added.

Multi-strategy hedge fund GSIP launched in November 2008 with $7 billion in assets, one of the largest hedge fund launches at the time. GSIP, run globally by co-heads Raanan Agus and Kenneth Eberts, sits within Goldman's asset management division.

But a focus on value investing with around 20 positions mainly in equities became more challenging in recent years, a former employee told Reuters.

GSIP's Global Long Short Partners Offshore fund posted losses of 8.2 percent in the year to end-September in 2016 after small gains of 1.5 percent in 2015, according to an investor letter reviewed by Reuters.

Last September, three of the fund's top five credit positions were in the Europe Middle East and Africa region, according to the letter.

GSIP's assets fell in 2014 after Goldman pulled out $2.8 billion in response to the U.S. Dodd-Frank financial reform law and the Volcker rule, which restricted banks' proprietary trading. The fund now manages around $3.5 billion.

Separately, Goldman may move up to 1,000 staff out of London in response to Britain's vote to leave the European Union, it was reported last month.

END Story

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