Thoughts on Goldman Sachs’ reorganization and merging of IB and trading?
Interesting to see how this will change their senior leadership"Goldman will combine its flagship investment-banking and trading businesses into one unit, while merging asset and wealth management into another, people familiar with the matter said. Marcus, Goldman's consumer-banking arm, will be part of the asset- and wealth-management unit, the people said."-WSJ
Why would they do this? Article didn't explain
Shift towards stable fees in all economic environments
And how does changing reporting lines accomplish this?
It means they can lay off more people
THIS
What does this mean for the junior bankers at GS?
Probably helps them get a better valuation on their wealth and AM businesses. Also shows that they’re focused on growing their recurring revenue business, much like MS has.
F@cking Goldman
they will eventually spin off the wealth management business and take IB / trading private and make shit tons of money for themselves again
Pirates
i both despise them and admire them in equal measures
General take is to smooth out earnings across divisions. Part of Dsols vision has been to move away from more volatile businesses such as trading/ib and into more fee based like wealth management/retail. By combining IB/Markets you smooth things out over quarters even if its just optical.
More controversial view is that his retail banking plan hasn’t worked out well and is losing money so by hiding within a broader division it doesn’t stick out.
i worked there and this is a good take, plus the guy above who said you can fire more people lol
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