Lansdowne Partners Sells Goldman Sachs Stake

August 1, 2011 James Heinsman Hedge Fund News

For a staggering $850m, Lansdowne Partners has sold its stake in Goldman Sachs.  According to an article in City AM, this is apparently “amid fears that increased regulation in the US could stunt the investment bank’s proprietary trading arm.”

The amount of shares Lansdowne sold in Goldman Sachs (nearly five million) accounts for close to one percent of Sachs’ total share capital.  Lansdowne was one of the investment banker’s “top twenty investors” until the sale went ahead.  Indeed, the stake amounts to close to “10 percent of the $10bn funds Lansdowne has under management.”

2008 Sales

The last time that Lansdowne actually sold shares in Goldman Sachs was around three years ago, “in the months leading up to the collapse of Lehman Brothers in 2008, which precipitated the global banking crisis.”

There has been concern regarding the implementation by American regulators of the Volcker Rule, according to reports in The Sunday Telegraph. This new legislation will force banks to “spin off certain proprietary investment practices, which could hit Goldman’s profits.”  Just a week ago it became clear than over “a dozen traders had quit Goldman’s US government bonds and derivatives trading desk in New York in recent months, as the bank takes fewer risks, and big bonuses for ambitious traders dry up.”

 

Goldman Sachs, Lansdowne Partners, Lehman Brothers,

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