Goldman not panicking about trading performance

Lloyd Fonzie Blankfein

Lloyd Blankfein says he knows how to fix Goldman Sachs Group Inc.’s fixed-income business, and he’s not panicking.

“Believe me, none of us are hysterical about this, but we’re focused on it,” the New York-based bank’s chief executive officer said Wednesday in a Bloomberg Television interview. “We underperformed, we know what we have to do, and we’re doing it. It’s an execution matter for us, and guess what, that’s what we do.”

Bloomberg News reports that Goldman must change the mix of products it emphasizes and the clients it transacts with as many hedge funds have been less active, Blankfein said. For example, the firm must ensure the commodities business is the proper size for the current environment, even though many issues in that market are cyclical and volatility in oil prices should resume and help volume, he said.

Blankfein also said in the interview that the Volcker Rule is cumbersome and makes traders nervous because of the blurry line between speculation and market-making. While Donald Trump’s administration hasn’t formally rolled back banking regulation yet, the sentiment from regulators has changed since his election, Blankfein said.

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