Goldman (GS) Considering Spinning Off Private Equity Arm

Goldman Sachs (GS) is looking to spin-off parts of its massive private equity arm.

Reuters: “Goldman Sachs executives are weighing spinning off at least a part of the bank’s private equity business following financial reform legislation, Fox Business reported on Tuesday.

The discussions were prompted by concerns about the Volcker rule, which restricts the amount of ownership banks can have in buyout or hedge funds, the report said, citing a Wall Street investment banker with direct knowledge of the matter.”

The report, while saying that internal discussions at Goldman are more than just theoretical, also noted that unnamed Goldman execs are saying that nothing is imminent as they believe under the Volcker rule the firm will have five to seven years for such a move.

Shares of Goldman were off by 0.06% to $152.65 in midday trading.  The stock had traded as high as $193.60 and as low as $129.50 this year.

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