Published On: Sun, Nov 30th, 2014

Could Goldman Sachs Go Private?

The Goldman Sachs logo is displayed on a post above the floor of the New York Stock Exchange

Rumors were flying that investment banking giant, Goldman Sachs, could possibly go private, according to Benzinga.

Brean Capital’s Peter Tchir admitted Goldman Sachs might spin off its banking unit. It might be one way to stay out of the regulatory gaze of Elizabeth Warren, because as a private entity, it could avoid restrictions on banking, trading, lending and storing commodities.

Peter Tchir wrote on Twitter doesn’t think it’s a crazy idea, because the bank could “dominate fixed income spectacularly, and have no depositor base to speak of.” However, Doug Cass, also writing on Twitter, thinks there is “no way the Fed would support it.” However, even if private, Goldman Sachs would still have to answer to Dodd Frank rules regulating banking. One response was that Goldman Sachs would lose the opportunity to borrow from the Fed at low rates, but Tchir responded that the bank doesn’t borrow from the Fed.

Some like the idea. Anand Sanghvi of Sang Lucci trading commented that the bank could “feed risk to traders, ” and was bullish on the notion because of its top traders and independent ecosystem.

 

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