Lloyd Blankfein, chairman and CEO of Goldman Sachs, said on Tuesday the firm would start winding down hedge funds and harvesting private equity, in order to comply with financial reforms designed to curb riskier activities.
At a Bank of America conference, Blankfein said the moves were in keeping with guidelines under the Volcker Rule that bans banks from trading for their own account. He added that investment banking remained Goldman's primary focus.
Goldman is one of a few Wall Street names that have scaled back on proprietary trading and other investments that the Volcker Rule -- named after former Federal Reserve chairman Paul Volcker and the centerpiece of Dodd-Frank financial legislation -- may outlaw.
Blankfein went on to say that clients would demand certain services, despite Volcker prohibiting them. He added that the rule would allow firms to co-invest with, and provide liquidity to, its investors, but key businesses won't be as attractive as they once were.