Aug 4 Goldman Sachs Group Inc is
jettisoning less-profitable hedge-fund clients and raising fees
on others as it tries to adapt to new banking rules, the Wall
Street Journal reported on Monday, citing people familiar with
The bank has told hedge fund clients the regulations have
forced it to set aside more capital, crimping profits at its
prime-brokerage business, which executes and finances the funds'
trades, the newspaper said.
The investment bank is also pulling the firm's own cash out
of its largest internal hedge fund to comply with the new
regulations, the Journal reported, citing sources. (on.wsj.com/1s6mKyj)
Goldman Sachs was not immediately available for comment.
The move is part of an attempt by Wall Street banks to scale
down from capital-intensive businesses in order to comply with
stricter capital requirements by U.S. regulators.
Goldman is urging funds to take back the cash they hold in
their accounts, charging clients more to finance trades and
imposing monthly fees more often on fund managers for
maintaining untapped credit lines with the bank, the Journal
In some cases, Goldman has stopped serving clients that
produce little or no returns for the firm, according to the
(Reporting by Sudarshan Varadhan in Bangalore; Editing by Lisa