Wall Street Big Banks to Provide Recruiting Details

October 12 00:00 2011

New York, October 12 (RainbowNewsLine.com) – According to a report in the New York Times on Tuesday many of Wall Street’s biggest banks have been asked to provide more details of their hedge fund recruiting services by the top financial regulator in Massachusetts.

The Times said that Bank of America, Deutsche Bank, Morgan Stanley, UBS, and Goldman Sachs have been asked by the secretary of the commonwealth of Massachusetts, William Galvin to provide a list of clients they had provided employment referrals to since January 2009.

This action is a sequel to the publication of an article in The New York Times that gave details about how staffing services were established by Wall Street firms in order to attract and retain trading and brokerage business from the hedge funds. The Times quoted Galvin as saying that firms might be offering the service only to select hedge funds, which could be a violation of Massachusetts securities laws.

There were no comments from the press officers of the banks nor could any of the parties be reached for comments. According to the research firm Sanford C. Bernstein & Company, hedge funds account for as much as 35 percent of all trading revenue on Wall Street.