In a recent article, Bloomberg Businessweek explores Goldman Sachs’ Special Situations Group (SSG), its proprietary trading sector that invests in troubled companies and makes loans to high-risk borrowers. Although the Volker rule, which puts extra restrictions on banks that receive government funding, intends to end such proprietary trading, the SSG may live on. Professor Roberta Karmel explained to Bloomberg, “These laws are too complicated, and [Goldman Sachs] can find loopholes. I don’t know how strictly the regulators will be able to define proprietary trading.”
Read the full article.