Goldman Sachs: Ditching Prop Desk, Says CNBC

a couple of options on the table There “are a couple of options on the table,” says rer Kelly, including “seeding” a hedge fund with Goldman money to hold the operations, run by former Goldman execs. The other possibility is to move the desk into Goldman’s asset management.

“They also might be moving some people around in Europe from London to Zurich where they have leased some office space so they are playing with a bunch of different scenarios to deal with the tax situations in the U.K. as well as the Volcker Rule,” says Kelly.

I would note that Morgan Stanley (MS) appears to be moving rer this afternoon on similar rumors of a disposal of its prop desk.