Bloomberg News reports that Goldman Sachs Asset Management said in a press release Wednesday that it is teaming up with HazelTree to offer the service to hedge funds, fund administrators, managed account providers and family offices.
Goldman Sachs said the partnership was created in response to changing regulations for large banks that have been deemed SIFIs, or systemically important financial institutions, and are subject to Basel III guidelines on capital requirements and balance sheet composition.
'Because of these new requirements, banks’ desire to accept or retain short-term cash deposits on their balance sheets has become challenging for SIFIs, and many institutional investors may not be able to keep cash balances on deposit in the same way they have in the past', Stephen Casner, chief executive officer of HazelTree, said in the statement. Casner said hedge funds, in particular, will be under pressure to find alternatives for their cash.
To access the complete Bloomberg News article hit the link below: