The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Goldman Sachs reports loss of traders, Volcker Rule gets stomach aches from venture county

Obama’s cash kitty reached $68 mln for the election bid, a good score even as Warren Buffet hoped the Republicans would help pay back the debt after his offer. Benchmark reviews of campaign cash notwithstanding Obama is not getting through unless this score adds to his approval rating which, below 50 , puts big time consultant “King of Bain” (Hat tip – Reuters Breaking views) in striking distance. According to the insider, BRV even has a re election calculator on your Reuters screen, disqualifying the Goldman Sachs GDP forecast if Obama needs to be re elected.

Our forecast is a little higher at 3% and Obama may yet make it despite the troubles of Private Equity kicking South Carolina quietly and Mitt Romney emerging a strong GOP candidate. Private Equity started working off the flab from a bad 2008, 2009 and 2010 with a warning note about funding troubles because of the Volcker rule, Reuters Insider again, pointing out how the Silicon Valley Bank lends out 7-10% of its assets to PE which may restrict funding and ownership of hedge funds as it comes into effect. Volcker Rule is also being adopted by CFTC along with rules to protect customer monies by Jan 25

U.S. Morning Call: Goldman Sachs loses 2 top traders, Thomson Reuters: Reuters Insider http://reut.rs/y6BTkn

It's Volcker for us, Call helpdesk now!

Goldman Sachs in the meantime is not out of the woods after its 50% savings plan hit pay apart from bonuses for traders. Two of its four business Heads in Trading are leaving the bank as it is in the middle of changing its business focus. Apparently David Heller  left the Equities trading desk after 22 years and Ed Eisner left after 18 years managing Interest Rate Derivatives and FICC desks. Global Commodities head, Isabelle Ealet moved into Co Head of trading role while three new appointments were made to the managing committee , the top team of Partners at Goldman that run the company with the Chairman. Eric Lane was also promoted to Head of Wealth and Investment Management instead of Ed Frost who left last month

Both Mr Heller and Mr Eisler were members of the company’s management committee, as is Ms Ealet. The management committee is Goldman’s top group of partners.

It was announced in December that Edward Forst, the co-head of investment management and another member of the management committee, would leave the bank.

The three executives will be replaced on the committee by Eric S. Lane, the recently named co-head of the firm’s investment management division and private wealth platform, Stephen M. Scherr, global head of financing in the investment banking division and head of Latin America business, and Ashok Varadhan, the global head of currencies and emerging markets in the securities division and a member of the firm’s partner committee. The appointments were announced in a memo today

Is Private Equity still getting off too easy?

Carlyle yesterday distributed $413 mln to its three owners and distributed nearly $17 bln from its $12 bln in investments attracted this year eliciting cries forom the industry for the Tax rate of 15% that Private Equity income attracts as Capital Gains and including Carried interest for MTM gains between years. That makes it a little tough for Romney and the “King of Bain” to beat back competition from Gingrich and others to the right to defend the American faith to not raise taxes on the rich till Jan 21 when South Carolina is decided

LONDON, ENGLAND - JANUARY 25:  Workers walk ac...

Image by Getty Images via @daylife

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