Goldman Faces Technology Issue With Spinoff: (published on Thursday, 5 Aug 2010 | 9:19 PM ET )
Goldman Sachs' plan to spin off its proprietary trading business has run into an unexpected technology glitch that has sent the Wall Street firm scrambling to hire computer programers and project managers.
The problem is that Goldman's traders use a special computer language called "Slang" that was developed for internal use only. That language plays a vital role in Goldman's prop trading, including it's computer driven high-frequency trading.
Goldman has decided the new spin-off won't get the rights to Slang, according to a person familiar with the matter.
As a result, Goldman is rushing to translate its trading programs into a more standard computer code usable by the new spin-off trading company.
Recruiters around New York have been contacted to bring on new tech talent to rebuild Goldman's trading operations. The recruitment drive is cloaked in secrecy, however.
At initial stages, potential recruits are not even told that Goldman is the client.