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Goldman Sachs to Open a Bitcoin Trading Operation (nytimes.com)

Posted by ryuzaki0 on from the times-they-are-changin' dept.

Even as most big banks have maintained distance from virtual currency Bitcoin, Goldman Sachs is bucking the risks: It plans to set up what appears to be the first Bitcoin trading operation at a Wall Street bank. From a report: In a step that is likely to lend legitimacy to virtual currencies -- and create new concerns for Goldman -- the bank is about to begin using its own money to trade with clients in a variety of contracts linked to the price of Bitcoin. While Goldman will not initially be buying and selling actual Bitcoins, a team at the bank is looking at going in that direction if it can get regulatory approval and figure out how to deal with the additional risks associated with holding the virtual currency. Rana Yared, one of the Goldman executives overseeing the creation of the trading operation, said the bank was cleareyed about what it was getting itself into. "I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world," Ms. Yared said. "For almost every person involved, there has been personal skepticism brought to the table."

10 of 50 comments (clear)

  1. Why am I not reassured. by AlanObject · · Score: 2

    First thought: here come the Bitcoin flash traders.

    1. Re:Why am I not reassured. by war4peace · · Score: 2

      Bitcoin Network and High Frequency Trading are mutually exclusive.
      You can engage in HFT only within one single exchange's ecosystem, because major crypto-exchanges have coin pools where wallets are referred rather than actually holding assets, but then you can only make a profit within that exchange, the overall market effect being limited because the exchanges are siloed.

      --
      ...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
    2. Re:Why am I not reassured. by arglebargle_xiv · · Score: 2

      The vampire squid wrapped around the face of humanity has found a new opening that smells like money to relentlessly jam its blood funnel into?

  2. Money Laundering by rsilvergun · · Score: 4, Interesting

    is what I'm guessing this will turn into. The question is how long can they get away with it. I know in Europe banking laws are written so you can't set up a banking structure that lets you launder money and pretend you didn't know that was happening. With the US it comes down to enforcement and regulatory oversight, both of which are lax right now.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re: Money Laundering by Anonymous Coward · · Score: 5, Insightful

      ITS Goldman Sachs you stupid or what?! They never needed BTC to make money laundering, they even cheated European Union to let them think Greece had money while they were bankrupt !!! (To let them join Europe when they should not have join Europe and euro group...) this is the bank who created the euro debt crisis! (Which was caused by the subprime America crisis, in which Goldman Sachs bet against his own clients...)

    2. Re:Money Laundering by TheZeitgeist · · Score: 2

      I know in Europe banking laws are written so you can't set up a banking structure that lets you launder money and pretend you didn't know that was happening.

      Ah, those wonderful Europeans and their financial cleanliness. Except for Switzerland. Oh, and don't forget Cyprus. Isle of Mann? That too I guess. Lichtenstein banks unsually well capitalized. Luxembourg doing alright I hear as well. I think Russia's entire 1% has their money stashed in London (not 'London' London...but the City of London). All above the board with no money laundering whatsoever pinky-swear.

  3. Re:Goldman Sachs... by ShanghaiBill · · Score: 2

    Aren't those guys supposed to be in jail for something?

    No. Goldman Sachs didn't need a bailout, and they didn't cause the crash. While everyone else was running up the housing market and pawning subprime mortgages off on Fannie Mae (backed by tax dollars), Goldman Sachs was betting against it, helping to deflate the bubble. If everyone had done what Goldman did, the financial crisis would have never happened.

  4. Of course! by GerryGilmore · · Score: 4, Insightful

    If anyone can spot an opportunity to bilk marks out of their dollars while feathering their own nests (https://www.amazon.com/Where-Are-Customers-Yachts-Street/dp/0471770892), it would - yes! - be that "vampire squid" epitomized by GS.

  5. Oh boy by PopeRatzo · · Score: 4, Insightful

    Now that Goldman Sachs is involved, surely nothing can go wrong. They're reputation is impeccable.

    --
    You are welcome on my lawn.
  6. Now bitcoin is too big to fail by Khashishi · · Score: 2

    I mean, it's gonna fail anyways, but now we'll pay for it.