Fox Business Reporting That Goldman Sachs Is A Step Ahead Of FinReg (GS)

According to a Fox Business report, Goldman Sachs GS has figured out a way of getting around the Volcker Rule's restrictions on proprietary trading. The firm is turning its risk-taking traders into asset managers. According to the report, Goldman has moved about half of its equity prop trading operation into its asset management division. The move is designed to exploit a loophole in the Volker Rule, which is supposed to scale back on risk taking on Wall Street through proprietary trading with the firm's capital. By moving the former prop traders into the asset management division, where they will be dealing with clients, the firm believes that it can meet the mandates of the Volcker rule while preserving the risk taking culture which has brought in massive profits in the past.