Tuesday 17 January 2017

Goldman shares languish on fears of Obama curbs

Published 23/01/2010 | 05:00

GOLDMAN Sachs shares continued to languish as Wall Street analysts debated the impact of US President Barack Obama's latest crackdown on banks.

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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.

Irish Independent

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