Goldman Sachs' plan to spin off its proprietary trading business has run into an unexpected technology glitch that has sent the Wall Street firm scrambling to hire computer programers and project managers.
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The Goldman Sachs booth on the floor of the New York Stock Exchange
As reported earlier Thursday by CNBC, Goldman could spin off part of its prop trading operations into an independent hedge fund as soon as Friday. The move is an attempt to comply with new rules limiting Wall Street firms from betting their own money in financial markets.
The problem is that Goldman's traders use a special computer language called "Slang" that was developed for internal use only. That language plays a vital role in Goldman's prop trading, including it's computer driven high-frequency trading.
Goldman has decided the new spin-off won't get the rights to Slang, according to a person familiar with the matter.
As a result, Goldman is rushing to translate its trading programs into a more standard computer code usable by the new spin-off trading company.
Recruiters around New York have been contacted to bring on new tech talent to rebuild Goldman's trading operations. The recruitment drive is cloaked in secrecy, however.
At initial stages, potential recruits are not even told that Goldman is the client.
Goldman's spokesman could not be reached for comment.
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