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-Proprietary traders said to exit Goldman to form own hedge fund.

BANKING AND CREDIT NEWS-January 10, 2011--Proprietary traders said to exit Goldman to form own hedge fund(C)2011 M2 COMMUNICATIONS

10 January 2011 - The proprietary traders of Wall Street bank Goldman Sachs (NYSE:GS) are leaving the company to set up a separate hedge fund bowing to the new regulations that curb private equity and hedge fund investments of banks, the Financial Times wrote yesterday.

The new London-based hedge fund, formed by Goldman's trading heads Ariel Roskishas and Daniele Benatoff, has already secured a USD300m (EUR232m) investment from European fund Brummer & Partners, according to the publication.

The bank refused to comment on the move.

Other sector players are closing their proprietary trading units following the Volcker plan hatched by former Federal Reserve Chairman Paul Volcker, which bans banks from holding over 3% of their Tier 1 capital in hedge funds and private equity investments.

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Publication:M2 Banking & Credit News (BCN)
Date:Jan 10, 2011
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