Goldman merging consumer retail and health care investment banking groups

Just saw this on Dealbook...thoughts? Does this mean a smaller group?

http://dealbook.nytimes.com/2014/06/25/goldman-sac...

"This change brings together a strong group of talented bankers who can be deployed more widely across a broader client base," the three heads of investment banking, Richard J. Gnodde, David Solomon and John S. Weinberg, wrote in the memo. "This will allow us to better serve the strategic and financing needs of our consumer retail and health care clients across geographies as we see growing convergence between subsectors."

I hope they conducted an analysis on the synergies of the post merger structure...

Comments (6)

Jun 26, 2014

I don't get the rationale. If each of the groups are seeing increasing deal flow, why merge them and consolidate resources? Why not expand each individually?

I understand the cost cutting point of view, but if they keep getting mandated, I just cannot seem to figure out why they want to merge them...

Jun 27, 2014

bump

Jun 27, 2014

Ever heard of Johnson and Johnson?

Jun 28, 2014

Politics.

Jun 29, 2014

UBS did the same a few months ago.

Jun 29, 2014
Comment