WSJ – Goldman Sachs Group Inc. is building an in-house bank to lend money to wealthy people and companies. Rules that stem from the U.S. Dodd-Frank overhaul, including the Volcker rule, which limits the gambles a bank can take with its own money, and international capital rules that dictate how much risk Goldman can take on, are crimping the firm’s ability to make profits in its trading business, executives say.
To date, Goldman’s banking unit has about $100 billion in assets, or nearly 10% of Goldman’s total assets. About half of the bank’s assets are in the form of derivatives instead of loans. Goldman parked them there after the financial crisis.
