Goldman shares languish on fears of Obama curbs
GOLDMAN Sachs shares continued to languish as Wall Street analysts debated the impact of US President Barack Obama's latest crackdown on banks.
The shares were down by just under 2pc at $157.88 in noon trading yesterday after losing 4pc on Thursday, when Mr Obama's threat to limit banks' proprietary trading and alternative fund ownership took the shine off Goldman's stunning full-year results announcement.
It made about 10pc of its net revenues, $4.5bn (€3.6bn) last year, from investing its own money, the profits from which were mainly channelled through its trading and principal investment division.
The bank also manages $146 billion in private equity and hedge fund investments ---a business at first thought to be threatened by Mr Obama's new rules, sending investors fleeing.
President Obama has demanded that banks with deposit-taking business or access to the Federal Reserve's discounted funding cease trading on their own account and operating hedge or private equity funds -- unless the funds are for the benefit of customers.