The firm has let go some of its less-profitable clients, telling them it has to re-evaluate its businesses based on return on assets, rather than revenue generation, the Wall Street Journal reported. The company has redeemed cash from its largest internal fund as it looks to comply with rules regarding how it invests its money, and how much capital it keeps on hand.
Far from being alone, Goldman and rivals Bank of America and Deutsche Bank are in the same boat. Analyst Robert Sloan of S3 Partners told the Journal that the effort to comply with new regulations instituted after the financial crisis is "the most dramatic thing to happen" ever in the banking industry.
Others, such as UBS and Credit Suisse, also are in discussion with clients about the effects of the new rules, the Journal said.
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