A Goldman Sachs Trading Team Sidesteps the Volcker Rule

An investing operation avoids short-term moves to sidestep the Volcker Rule
Lloyd Blankfein (right), chairman and chief executive officer of Goldman Sachs, speaks to the Economic Club in Washington, D.C. Photograph by Joshua Roberts/Bloomberg

Sitting onstage in Washington’s Ronald Reagan Building in July, Lloyd Blankfein said Goldman Sachs Group had stopped using its own money to make bets on the bank’s behalf. “We shut off that activity,” the chief executive officer told more than 400 people at a lunch organized by the Economic Club of Washington, slicing the air with his hand. The bank no longer had proprietary traders who “just put on risks that they wanted” and didn’t interact with clients, he said.

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