NEW YORK CITY (dpa-AFX) - Goldman Sachs Group Inc. (GS) has changed a policy addressing conflicts of interest to bar investment bankers from trading individual stocks and bonds, according to reports quoting a person familiar with matter.
Employees at the company were notified of the change, which takes effect immediately. They also aren't allowed to invest in activist or event-driven hedge funds. Previously, bankers needed approval before they could invest in individual stocks, the reports said.
According to reports, the change had been discussed for months and tightens a policy that was adjusted after the Kinder Morgan deal. The move is intended to reduce potential conflicts with clients and protect the firm's reputation.
The new restrictions at Goldman Sachs also will apply to some employees outside of investment banking, including those who could have access to confidential information as part of their roles.
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