John At The Center

“This may be a way of keeping a high-margin capital- markets business in the fold, within the language of the law,” said David Hendler, a senior analyst at New York-based research firm CreditSights Inc. “They would be transforming it from an- interest-plus-capital-gain business into a fee business.”

Citigroup and Goldman Sachs Group Inc. are among U.S. firms grappling with provisions in the law signed last week requiring banks to stop using their own money to wager on securities and markets. The changes were advocated by former Federal Reserve Chairman Paul Volcker, who said banks supported by federal deposit insurance shouldn’t be allowed to speculate

via Citigroup May Move Prop Traders to Hedge Funds for Volcker Rule – BusinessWeek.