Proprietary traders within Goldman Sachs Group Inc.'s U.S. principal strategies equities unit are in talks to join other firms, according to a person familiar with the situation.
These firms include KKR & Co., BlackRock Inc., Perella Weinberg Partners LP, Carlyle Group, and Pacific Investment Management Co., according to this person.
Bob Howard, who leads Goldman Sachs' U.S. team, is probably involved in the talks. If he chooses to join one of those firms, he would take team members with him, the person said. Morgan Sze, who leads the firm's proprietary trading business in Asia, is considering starting his own hedge fund, and a number of discussions regarding the European operations are underway, according to the person.
Last week, Goldman decided to close the principal strategies business to comply with a provision in the Dodd-Frank financial overhaul bill that restricts proprietary trading.
Rivals on Wall Street are also considering options for their proprietary trading businesses because of the Dodd-Frank Act. JPMorgan Chase & Co. is winding down its own proprietary-trading operations and has given notice to its roughly 20 proprietary commodities traders that their jobs will be terminated.