Here's one way to comply with the Volcker rule: send all your prop traders to a private equity firm.
Nine Goldman Sachs' prop traders are heading to KKR. The private equity giant is expanding beyond its regular business and has been bulking up its fixed income and capital markets divisions, Dealbook writes. KKR's main competitor Blackstone already has some of these capabilities, so the Goldman addition will likely bring KKR up to pace when it comes to trying to outshine its peers.
Goldman's prop trader desks abroad are considering their next move. Some traders are said to be setting up their own fund.
Other firms are expected to unveil their plans for their prop traders in coming months.
Related: Where Will All the Prop Traders Go?