Goldman Sachs is going through a massive transformation under CEO David Solomon

Goldman Sachs CEO David Solomon
Goldman Sachs CEO David Solomon.

  • Goldman Sachs CEO David Solomon is taking big steps to transform the bank.
  • Goldman has been pushing into consumer banking and wealth management.
  • But a slew of partners have jumped ship, and Marcus has seen a big talent exodus.
  • Visit the Business section of Insider for more stories.

Goldman Sachs is going through some big changes under CEO David Solomon.

The Wall Street bank has taken steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is executing on targets including multi-year cost-cutting plans. And it’s making big pushes into wealth management and consumer banking.

Goldman smashed expectations and set a revenue record in the first quarter, and its stock price has soared. Investors and Wall Street analysts are singing Solomon’s praises.

But the firm’s top ranks have seen almost unprecedented turnover, with six members of the management committee departing over the past year.

And junior bankers have been so overworked that they put together two presentations to express their unhappiness to management. Engineers in a consumer division that Goldman spent billions to build have quit in droves.

Here’s a rundown of the must-know news at Goldman, including the latest hires and exits, as well as deep dives on its Marcus consumer bank and wealth-management push.


Who are the top leaders at Goldman?

Goldman Sachs org chart 2x1

Goldman in September shuffled its setup, creating a new standalone consumer division that includes its Marcus lending unit as well as its wealth-management and private-banking businesses.

Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth business, were tapped to colead the new consumer and wealth management division and the changes went into effect on Jan. 1.

The new setup matches the way Goldman reports financial results, a change the firm made in 2019 to better align with how Solomon wanted investors to think about the firm. Goldman now has four divisions: consumer and wealth management, asset management, investment banking, and global markets.

Read more:


The lastest news on Goldman’s Marcus

Marcus Goldman Sachs
Marcus offers savings and credit products online and through its app.

Goldman Sachs has built its consumer-banking arm into a $1 billion business over the past five years.

But it’s seen a wave of recent departures including the exits of top Marcus bosses Omer Ismail and David Stark. And JPMorgan has poached the head of product at Marcus to join the bank’s digital and product leadership team for consumer and community banking, while CNBC first reported in May that Sherry Ann Mohan, chief financial officer for Goldman’s consumer business, is leaving to serve as CFO of JPMorgan’s business banking division beginning in August.

Insiders explained how Goldman Sachs’ hard-charging culture had contributed to exhaustion and high turnover within Marcus, and a Goldman spokesperson told us that the firm is eyeing beefing up the ranks by hiring some 200 to 300 new engineers.

Read more:


Goldman’s wealth-management push

Meena Flynn and John Mallory of Goldman Sachs
Meena Flynn and John Mallory co-head the private wealth business at Goldman Sachs.

Goldman, a firm synonymous with enormous wealth, has in recent years tried to reshape itself as a bank that can count someone with just $1,000 to invest as a client just as it has long done business with large companies and the very wealthy.

It launched Marcus Invest, a robo-advisor with a $1,000 minimum, earlier this year. And it has reorganized how its wealth businesses are situated entirely, creating a new internal consumer and wealth management division that went into effect at the start of this year. Goldman has some 800 advisors within private wealth globally.


Goldman’s dealmakers

When Goldman announced its latest class of partners, one group was particularly well-represented on the list. Seven of the 19 investment bankers elevated to partner status came from the bank’s powerhouse technology, media, and telecommunications group.

The group has also seen some shakeups in recent months. Goldman Sachs veteran Gregg Lemkau, co-head of the firm’s investment banking division since 2017 and a member of Goldman’s management committee, left at the end of 2020. Instacart has tapped Nick Giovanni, Goldman Sachs’ head of the global technology, media and telecom group, to be its CFO. And in September, Goldman Sachs named new leadership in its M&A group.

Goldman has also been riding the SPAC boom, which went into overdrive in the first quarter. It ranked No. 2 among banks in terms of SPAC IPOs year-to-date by mid-March.

Read more:

Read the original article on Business Insider

Goldman Sachs is going through a big transformation under CEO David Solomon

Goldman Sachs CEO David Solomon
Goldman Sachs CEO David Solomon.

Goldman Sachs is going through some massive changes under CEO David Solomon.

The Wall Street bank has taken big steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is looking to execute on targets including multi-year cost-cutting plans. And it’s making big pushes into wealth management and consumer banking.

Solomon, who took the reins as CEO in 2018, has also looked to reduce the number of partners overall at the firm to make the status more elite and exclusive. In 2018, there were 484 partners. But as of the newest partner additions, Goldman’s total partners amounted to fewer than 440.

Goldman Sachs reported first-quarter earnings on Wednesday, April 14, and turned in blowout performance on trading and dealmaking. Stephen Scherr, Goldman Sachs’ chief financial officer, said on the earnings call that the firm is increasingly leaning into cloud technology.

“Our new builds are largely, perhaps not exclusively, but largely cloud-based,” he said.

“We’re riveted and focused on doing that so as to eliminate legacy technology,” Scherr added.

Here’s a rundown of the latest news at Goldman, including the latest hires and exits, deep dives on its Marcus consumer bank, and how Goldman investment banking analysts are reacting after a year of rapid-fire deal while WFH.


The lastest news on Goldman’s Marcus

Marcus Goldman Sachs
Marcus offers savings and credit products online and through its app.

Goldman Sachs has built its consumer-banking arm into a $1 billion business over the past five years.

But it’s seen a wave of recent departures including the exits of top Marcus bosses Omer Ismail and David Stark. And JPMorgan has poached the head of product at Marcus to join the bank’s digital and product leadership team for consumer and community banking.

Insiders explained how Goldman Sachs’ hard-charging culture had contributed to exhaustion and high turnover within Marcus, and a Goldman spokesperson told us that the firm is eyeing beefing up the ranks by hiring some 200 to 300 new engineers.

Read more:


Who are the top leaders at Goldman?

Goldman Sachs org chart 2x1

Goldman in September shuffled its setup, creating a new standalone consumer division that includes its Marcus lending unit as well as its wealth-management and private-banking businesses.

Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth business, were tapped to colead the new consumer and wealth management division and the changes went into effect on Jan. 1.

The new setup matches the way Goldman reports financial results, a change the firm made in 2019 to better align with how Solomon wanted investors to think about the firm. Goldman now has four divisions: consumer and wealth management, asset management, investment banking, and global markets.

Read more:


Goldman’s junior bankers are feeling the heat

wall street burnout young talent junior analyst 2x1

A grueling year of increased demands while working from home has some Goldman Sachs junior talent reaching a breaking point.

In March, a presentation created by 13 analysts within the firm’s investment bank grabbed headlines. Meanwhile, the bank is prepping its latest cohort of young bankers for a return to in-person work.

Read more:

Goldman’s dealmakers

When Goldman announced its latest class of partners, one group was particularly well-represented on the list. Seven of the 19 investment bankers elevated to partner status came from the bank’s powerhouse technology, media, and telecommunications group.

The group has also seen some shakeups in recent months. Goldman Sachs veteran Gregg Lemkau, co-head of the firm’s investment banking division since 2017 and a member of Goldman’s management committee, left at the end of 2020. Instacart has tapped Nick Giovanni, Goldman Sachs’ head of the global technology, media and telecom group, to be its CFO. And in September, Goldman Sachs named new leadership in its M&A group.

Goldman has also been riding the SPAC boom, which went into overdrive in the first quarter. It ranked No. 2 among banks in terms of SPAC IPOs year-to-date by mid-March.

Read more:

Read the original article on Business Insider

How JPMorgan plans to boost wealth management and battle fintech competition

Jamie Dimon
JPMorgan CEO Jamie Dimon

  • JPMorgan, headed up by CEO Jamie Dimon, is the biggest US bank by assets.
  • The bank has big plans for wealth management growth.
  • JPMorgan also made new digital banking hires, including poaching an exec from Goldman.
  • Visit Business Insider’s homepage for more stories.

JPMorgan is the biggest bank in the US and a bellwether for the global financial system. So when the firm’s senior-most leaders talk, Wall Street pays attention.

The bank is set to report first-quarter earnings on Wednesday, April 14. Earlier this month, CEO Jamie Dimon published his annual shareholder letter.

JPMorgan has also recently nabbed three new hires for its digital and product leadership team for consumer and community banking (CBB) from some of its biggest competitors.

Read more:

Recent hires and exits at JPMorgan

Sonali   Headshot SDivilek
One of JPMorgan’s recent hires is Sonali Divilek, who was a key executive at Goldman Sachs’ Marcus in charge of products.

JPMorgan on April 13 announced three new hires to support its consumer- and community-banking team.

Sonali Divilek, who was the head of product at Goldman Sachs’ Marcus, is one of the hires. The departure of Divilek, whom Chase said would be joining the bank this summer as the head of digital channels and products, represents a blow for Goldman’s consumer business as it looks to compete amid a raft of leadership and engineering exits.

Thasunda Brown Duckett, a rising star at the firm and the first Black woman to join its influential operating committee, left JPMorgan in February to lead financial services and retirement firm TIAA. Jennifer Roberts, who headed the firm’s business banking group, was named the bank’s new consumer head in March.

More on people moves here:

Wealth management plans

MASPETH, NY - NOVEMBER 17: Shivani Siroya, Kristin Lemkau and Stephanie Cohen speak onstage at Girlboss Rally NYC 2018 at Knockdown Center on November 17, 2018 in Maspeth, New York. (Photo by JP Yim/Getty Images for Girlboss Rally NYC 2018)
Kristin Lemkau, center, the chief executive of JPMorgan’s US wealth management business.

JPMorgan is planning to significantly expand its financial advisor force, bringing the firm closer in size and scope to its rival firms in wealth management. Over the next five to six years, the bank is considering hiring as many as 4,000 advisors to roughly double its current base, US Wealth Management Chief Executive Officer Kristin Lemkau told Business Insider this fall.

Lemkau, who has been with the bank for over two decades and was previously its chief marketing officer, was named head of JPMorgan’s new wealth division in December 2019. Its various wealth businesses, including its self-directed wealth product, were reorganized under one umbrella.

Read more on JPMorgan’s wealth management plans:

Read the original article on Business Insider

Inside JPMorgan’s plans to boost wealth management and battle fintech competition

Jamie Dimon
JPMorgan CEO Jamie Dimon

  • JPMorgan, headed up by CEO Jamie Dimon, is the biggest US bank by assets.
  • The bank has big plans for wealth management growth.
  • JPMorgan is also looking to bring workers back to offices, including a new Manhattan HQ.
  • Visit Business Insider’s homepage for more stories.

JPMorgan is the biggest bank in the US and a bellwether for the global financial system. So when the firm’s senior-most leaders talk, Wall Street pays attention.

The bank is set to report first-quarter earnings on Wednesday, April 14. Earlier this month, CEO Jamie Dimon published his annual shareholder letter.

Read more:

Wealth management plans

MASPETH, NY - NOVEMBER 17: Shivani Siroya, Kristin Lemkau and Stephanie Cohen speak onstage at Girlboss Rally NYC 2018 at Knockdown Center on November 17, 2018 in Maspeth, New York. (Photo by JP Yim/Getty Images for Girlboss Rally NYC 2018)
Kristin Lemkau, the chief executive of JPMorgan’s US wealth management business.

JPMorgan is planning to significantly expand its financial advisor force, bringing the firm closer in size and scope to its rival firms in wealth management. Over the next five to six years, the bank is considering hiring as many as 4,000 advisors to roughly double its current base, US Wealth Management Chief Executive Officer Kristin Lemkau told Business Insider this fall.

Lemkau, who has been with the bank for over two decades and was previously its chief marketing officer, was named head of JPMorgan’s new wealth division in December 2019. Its various wealth businesses, including its self-directed wealth product, were reorganized under one umbrella.

Read more on JPMorgan’s wealth management plans:

Recent hires and exits at JPMorgan

Thasunda Brown Duckett, a rising star at the firm and the first Black woman to join its influential operating committee, left JPMorgan in February to lead financial services and retirement firm TIAA. Jennifer Roberts, who headed the firm’s business banking group, was named the bank’s new consumer head in March.

More on people moves here:

Read the original article on Business Insider

Revolut, the $5.5 billion fintech startup, says it will let its 2,000 staff work abroad for 60 days a year

Revolut's London office.
Staff working in Revolut’s London office.

  • UK fintech Revolut, valued at $5.5 billion, plans to let its more than 2,000 staff work overseas for up to 60 days a year.
  • The policy, announced Thursday, follows demand from staff to work abroad, and is due to roll out once travel restrictions lift.
  • In a survey, Revolut staff said working from home hadn’t reduced their productivity.
  • See more stories on Insider’s business page.

Staff at UK fintech Revolut, one of Europe’s biggest startups, will soon be able to work abroad for up to two months each year, the company said Thursday.

The policy would apply to all of the company’s more than 2,000 employees, it said.

“Revolut staff members who wish to work outside their country of employment for personal and non-business related reasons, will be able to do so for a period of up to 60 calendar days over a rolling 12 months,” Revolut said in a statement shared with Insider.

Bloomberg first reported on the news.

The policy was set to start once COVID-19 travel restrictions are eased, and would comply with guidelines from national health authorities, Revolut said.

Read more: If you want to ask your boss to let you work from home forever, use this script

Revolut, which was valued at $5.5 billion last year, making it the UK’s most valuable fintech, said it designed the policy following requests from staff who wanted to visit family abroad.

“Our employees asked for flexibility and that’s what we’re giving them,” Jim MacDougall, Revolut’s VP of people, said in the statement.

Revolut has faced criticism for the way it treats its staff. A 2019 Wired report into the company’s work culture found high staff turnover and burnout among workers. Some applicants were also asked to work for free, according to the report. Revolut declined to comment at the time on specific points in the report, but said its “culture is evolving as rapidly as our business.”

In February, Revolut piloted a hybrid working model that let staff choose between working from home and in the office, and said it was repurposing all its offices as flexible collaborative spaces.

After a survey of its staff, Revolut said more than one-third wanted an entirely remote job, and just over half wanted to work from home between two and four days a week. Just 2% of staff said they would like to return to the office full-time.

Revolut's London office.
Revolut said its survey found that working from home didn’t affect staff’s ability to work as a team.

It added that 95% of respondents said that working from home either didn’t impact their personal productivity or had a positive impact on it, while the figure was 89% for team collaboration.

There is growing momentum for companies to let employees work from home permanently, leading to some companies canceling office leases.

Google is taking the opposite approach: In March, the tech giant announced plans to invest $7 billion in US offices and data centers, including new offices in Houston, Texas, and Portland, Oregon.

As the COVID-19 vaccine rollout ramps up across the US, some companies are considering making vaccinations mandatory for staff, which the Equal Employment Opportunity Commission says they’re within their rights to do.

Read the original article on Business Insider

Razer is leveraging its loyal fan base to introduce new fintech products for both gamers and non-gamers alike

MIN LIANG TAN   Razer
Min Liang Tan, CEO and cofounder of Razer

Gaming hardware manufacturing company Razer has come a long way since CEO and cofounder Min-Liang Tan had the idea to design a computer mouse specific for gamers back in 2005. According to the firm’s latest financial results, 2020 was a record year, with Razer for the first time achieving over US$1 billion in revenue, in the process also registering its first ever annual profit.

Razer’s success naturally lies in its hardware business, where it enjoys a hugely loyal fanbase for its controllers, headsets, keyboard, and laptops. But there is another business segment that is growing fast and which is pointing to a new – and potentially highly profitable – revenue stream for the gaming industry: fintech

In 2017, Razer stepped for the first time into the fintech sector with the launch of in-game payment service Razer Gold, which now has 26 million registered users. This was followed in 2018 by Razer Fintech, a digital payment network targeting both B2B and B2C end users across Southeast Asia.

Revenue from the financial services arm grew over 66% in 2020 to US$128.4 million. Speaking at an earnings briefing in March, CEO Min said the financial services growth was “truly phenomenal”, adding that it had been driven by surges in Razer Gold usage in the early days of the COVID-19 pandemic, as well as the demand for Razer Fintech B2B services due to the accelerated digitization of many businesses in the region.

Digital payments in Southeast Asia

When it comes to fintech, Southeast Asia is one of the fastest-growing markets in the world, outpacing the US, the UK, and even China. Razer is one of a number of companies with no previous financial sector experience that are now making significant steps into the sector. From ride hailing apps to e-commerce platforms and even airlines, more companies in the region are now also offering fintech services such as digital payments, loans, and even virtual banking.

“The usage of fintech, especially e-wallets, is a growing trend in Asia, especially in East and Southeast Asia,” Darang Candra, director of Southeast Asia at Niko Partners said. “None of Razer’s fellow unicorns in the region, such as Sea Group, Grab, and Gojek, started as fintech companies, but they later created their own fintech services – SeaMoney, GrabPay, and GoPay, respectively. This helped in pushing brand loyalty to their respective services. Razer seems to be in line with this trend.”

For companies such as Razer, moving into the fintech space is simply a case of responding to customer needs. This is especially true when it comes to providing digital payment services in a region that has some of the world’s lowest levels of financial inclusion.

KPMG estimates that as many as 73% of Southeast Asia’s population does not have access to a bank account. What they do have, though, is access to the internet. According to the e-Conomy 2020 report, co-produced by Google, Temasek, and Nain & Company, over 70% of people in Southeast Asia are now online, including an additional 40 million who came online in 2020 alone. The report also said the estimated gross transaction value (GTV) of digital payments in Southeast is expected to reach US$1.2 trillion by 2025, up from US$620 billion in 2020.

“In the past few years, we witnessed strong growth in gamers in Southeast Asia,” Limeng Lee, chief strategy officer at Razer and CEO at Razer Fintech, said. “However, we also noticed that while gaming activity was on the rise, monetization by our gaming partners did not see similar growth. We identified as a gating issue the ability for the young gamers to make digital payments for their gaming and entertainment needs, especially in countries where a large proportion of the population was still unbanked.”

One example of how Razer has moved quickly to fill the financial inclusion gap can be seen in the launch of the Razer Visa card, a virtual prepaid service that doesn’t require users to have access to a bank account. Instead, card owners can top up or cash out at a network of offline touchpoints.

As well as regular card benefits such as cash-back rewards, the Razer Visa also allows users to access an in-app gamified rewards system. Razer and Visa completed the first trial of the card late last year in Singapore and expect to roll out in other countries during 2021.

“Razer’s main business model is still focused on selling hardware products and based on what we see from the cooperation with Visa through their Razer Card, it seems that they want to specialize in providing rewards, cash backs, and even gamified-based bonuses for using Razer’s fintech services to buy hardware products,” Candra said. “This would be similar to how Sea, Grab, and Gojek’s fintech products are all connected to their respective ‘traditional’ businesses.”

Focus is firmly on the youth market

While Razer’s fintech ambitions are not exclusively targeting gamers, they are nonetheless focused heavily on Gen Zs and millennials – a demographic where the Razer brand is already well established.

Razer famously attracts a cult-like following. Tattoos of the company’s three-headed snake logo are especially popular. One Razer devotee even went as far as having his leg tattooed with Min’s face in return for a free Razer gaming smartphone. It is unimaginable that any of Razer’s competitors, such as Switzerland-based Logitech, could inspire similar brand devotion.

Looking to the future, this brand awareness and customer loyalty, combined with a huge customer base in the region, could be a key differentiator for Razer’s fintech plans in what is becoming a crowded and competitive market.

Says Razer’s Lee: “We are constantly in discussions with partners on potential collaboration who either want access to our 50,000-plus online merchants where we can help upsell their services or want association with the Razer brand to gain access to our 125 million-plus user base. These partnerships will be a win-win for both parties.”

At the end of last year, Razer unsuccessfully bid for one of Singapore’s two virtual banking licenses under the brand name Razer Youth Bank. While a setback for the company – local fintech rivals Grab and Sea were part of the winning consortiums – the bid nonetheless showed both the scope of Razer’s ambition, as well as its clear market position as a youth-focused fintech.

“Moving forward, Razer Fintech intends to aggressively scale up our core B2B business which has been driving the growth of our business in the past couple of years,” Lee said. “We will invest in further geographical expansion in the SEA region and other high growth emerging markets such as Latin America and the Middle East.”

Read the original article on Business Insider

Goldman Sachs is losing 2 consumer banking execs to Walmart. Here’s a look at how the powerhouse Wall Street bank has been making a Main Street push.

Goldman Sachs CEO David Solomon
Goldman Sachs CEO David Solomon.

Goldman Sachs has been going through some massive changes under CEO David Solomon.

It’s taken big steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is looking to execute on targets including multi-year cost-cutting plans. And it’s making big pushes into businesses like wealth management and consumer banking

Now, the elite Wall Street bank is finally launching its do-it-yourself wealth management offering to the public, marking a milestone in the elite firm’s quest to appeal to Main Street.  Goldman rolled out Marcus Invest, its automated investment tool with a $1,000 account minimum, in February after having previously faced delays.

But its consumer banking arm is losing two key execs: Omer Ismail, a partner at the firm and the head of Goldman’s consumer bank, and David Stark, one of his top deputies, are both heading to Walmart to work on a new fintech venture. 

Solomon, who took the reins as CEO in 2018, has also looked to reduce the number of partners overall at the firm in order to make the status more elite and exclusive. In 2018, there were 484 partners. But as of the latest announcement of the newest partner additions, Goldman’s total partners amounted to fewer than 440. 

Meanwhile, the upper echelons of one of Goldman Sachs’ most prestigious businesses, its investment banking division, has seen some high-profile exits in recent months. 

Who are the top leaders at Goldman?

Goldman Sachs org chart 2x1

Goldman in September shuffled its setup, creating a new standalone consumer division that includes its Marcus lending unit as well as its wealth-management and private-banking businesses.

Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth business, were tapped to colead the new consumer and wealth management division and the changes went into effect on Jan. 1.

The change eliminated the former consumer and investment management division, which held the consumer business and the asset-management unit known as Goldman Sachs asset management.

The new setup matches the way Goldman reports financial results, a change the firm made in 2019 to better align with how Solomon wanted investors to think about the firm. Goldman now has four divisions: consumer and wealth management, asset management, investment banking, and global markets.

Read more:

Consumer banking; wealth and asset management 

In Goldman Sachs’s quest to move down-market, part of its wealth management division is preparing to expand by hiring dozens of financial advisors. Goldman has been on a quest to manage money for clients less wealthy than the multi-millionaires to whom the bank has long catered. 

Goldman launched Marcus, a digital-only consumer bank, in 2016. And in 2019, it took the plunge into the consumer credit-card business by teaming up with Apple to launch both brands’ first consumer credit-card offering. Amazon has partnered with Goldman Sachs to offer loans to its merchants. And Stripe is partnering with banks including Goldman Sachs and Citi to offer business-banking services. 

The Wall Street bank in January named two executives to spearhead a newly formed group devoted to consumer and wealth-specific strategy and acquisitions.  Jemma Wolfe and Stephan Lambert will head up the new team, according to an internal memo seen by Insider. It also tapped six people to lead product development for the consumer and wealth group. 

And Swati Bhatia, a former Stripe exec, is joining as a partner to lead Goldman’s direct-to-consumer strategy. Bhatia was most recently the chief payments risk officer at Stripe, the online payments startup last valued at $36 billion.  Meanwhile, David Stark, a partner at Goldman that helped lead the Apple Card launch and the firm’s purchase of General Motors’ credit-card business, was tapped to take over responsibility for large partnerships within the consumer business. 

Bhatia and Stark were set to report to Omer Ismail, partner and head of Goldman’s consumer business. But as Bloomberg first reported this weekend, Ismail and Stark are now leaving the bank to join Walmart and work on its venture into financial services. 

Read more: 

Dealmakers 

When Goldman announced its latest class of partners, one group was particularly well-represented on the list. Seven of the 19 investment bankers elevated to partner status came from the bank’s powerhouse technology, media, and telecommunications group.

Goldman Sachs’ entire investment-banking business ranks number one in mergers and acquisitions and bookrunning for equity capital markets, according to Dealogic

Goldman has worked on some of the hottest IPOs of 2020, including DoorDash. It’s also got a pipeline of big names lined up for this year – as Business Insider first reported, the bank has been tapped to lead cryptocurrency exchange Coinbase’s planned offering. 

The firm also played a role in massive debt financings for travel-related companies during the coronavirus pandemic. One of the solutions was a first-of-its-kind deal helping United raise $6.8 billion in debt in June by leveraging its frequent flyer program. 

The group has also seen some shakeups in recent months. Goldman Sachs veteran Gregg Lemkau, co-head of the firm’s investment banking division since 2017 and a member of Goldman’s management committee, left at the end of 2020. Instacart has tapped Nick Giovanni, Goldman Sachs’ head of the global technology, media and telecom group, to be its CFO. And in September, Goldman Sachs named new leadership in its M&A group.

In February, Susie Scher, previously co-head of global financing, was named chairman of Goldman’s global financing group. Scher is a member of the firm’s partnership committee and its executive committee for the investment-banking division. Vivek Bantwal, who was previously the chief operating officer of the global markets division, is returning to the investment bank to assume the role vacated by Scher. 

Read more: 

Recent news on exits from Goldman Sachs

Ram Sundaram, the head of currencies and emerging-markets business at Goldman Sachs, is planning to exit the firm. Sundaram is a Goldman partner who was closely involved in the design and sale of the trades the bank did for the Malaysia development fund known as 1MDB. The bank reached a $3.9 billion settlement last year over its role in the trades. Sundaram has never been implicated in the scandal. 

Last June, Sundaram solidified his position as a senior leader in Goldman’s mighty markets division when a colleague’s departure made him the only executive running the emerging-markets and currencies business.

And markets division chairman Michael Daffey is leaving the bank after a 28-year career. Daffey has long been known for managing some of Goldman’s most important hedge fund clients, a role he was freed up to do last September when Solomon tapped him to become the chairman of the markets division. Prior to that, Daffey was the global co-COO of the equities business.

Read more:

What’s next for Goldman Sachs

Goldman Sachs itself is reportedly considering plans to shift asset management operations out of New York, where its headquarters tower over West Street in Manhattan’s financial district, to South Florida. Goldman’s move is not a done deal, but the reported plans echoed other New York-based firms’ recent moves.

And overall, Goldman is forging ahead with plans to divert more employees out of traditional banking capitals like New York, London, and Hong Kong to lower-cost cities including Salt Lake City, Dallas, and Bangalore, India.

Goldman’s relocation efforts are part of a broader strategy laid out at the bank’s investor day last January, which is directed at slashing $1.3 billion in costs over the course of three years.

Read more: 

Read the original article on Business Insider

Walmart has reportedly lured away two Goldman Sachs bankers to help lead its new fintech venture

walmart store shoppers
  • Walmart has reportedly poached two Goldman Sachs bankers to help it run its new fintech venture.
  • The retailer announced a partnership with Ribbit Capital to offer financial products in January.
  • Walmart’s latest move represents a commitment to forging a path in the financial world.
  • Visit the Business section of Insider for more stories.

As Walmart looks to launch a fintech startup, the retailer is turning to Wall Street veterans to help it move into the banking world.

Walmart Inc. has picked up two senior bankers from Goldman Sachs to help lead the retailer’s new fintech startup arm, Bloomberg reported on Sunday. Omer Ismail, the head of Goldman’s consumer bank, and David Stark, one of his top lieutenants, will leave the bank to help bolster Walmart’s venture into financial services with investment firm Ribbit Capital, people familiar with the matter told Bloomberg. The departure of Ismail, who runs Marcus, was a “surprise,” the sources told Bloomberg. 

Walmart announced earlier this year that it was partnering with Ribbit Capital, the firm backing fintech startups such as Robinhood, Affirm, and Credit Karma, to offer financial products for customers and employees. The startup, which has yet to be publicly named, will be mostly owned by Walmart and will include several Walmart executives on its board.

Customers have “made it clear they want more from us in the financial services arena,” president and CEO of Walmart US John Furner said previously in a statement. Walmart’s current financial service offerings include the Walmart CapitalOne credit card, the prepaid Walmart MoneyCard, and the ability for people to cash checks in stores.

“Walmart’s newly-announced fintech joint venture with Ribbit Capital will provide myriad growth opportunities, with the leveraging of its massive customer base at the center of the initiative,” Moody’s Vice-President and Senior Credit Officer Charlie O’Shea, said in a note to investors, Insider reported previously. “Walmart has been slowly and tactically expanding its financial service offerings to its customers, and measured expansion of these capabilities makes sense as it will deepen these all-important customer relationships.”

Walmart’s latest move represents a commitment to forging a path in the financial world. The retailer could also possibly have an advantage by eventually using its thousands of stores to market its new product and display advertisements to a large array of customers. 

In February, Walmart reported $152.1 billion in total sales, up over 7.3% year over year.

Walmart and Goldman Sachs did not immediately respond to Insider’s request for comment.

Read the original article on Business Insider

Wall Street powerhouse Goldman Sachs is going through a massive transformation under CEO David Solomon

Goldman Sachs CEO David Solomon
Goldman Sachs CEO David Solomon.

Goldman Sachs has been going through some massive changes under CEO David Solomon.

It’s taken big steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is looking to execute on targets including multi-year cost-cutting plans. And it’s making big pushes into businesses like wealth management and consumer banking

Now, the elite Wall Street bank is finally launching its do-it-yourself wealth management offering to the public, marking a milestone in the elite firm’s quest to appeal to Main Street.  Goldman rolled out Marcus Invest, its automated investment tool with a $1,000 account minimum, in February after having previously faced delays.

Solomon, who took the reins as CEO in 2018, has also looked to reduce the number of partners at the firm in order to make the status more elite and exclusive. In 2018, there were 484 partners. But as of the latest announcement of the newest partner additions, Goldman’s total partners amounted to fewer than 440. 

Meanwhile, the upper echelons of one of Goldman Sachs’ most prestigious businesses, its investment banking division, has seen some high-profile exits in recent months. 

Like all Wall Street firms, Goldman has found itself in an unprecedented era of remote work. But Solomon still sees lots of value in in-person face time – particularly for people just starting out their careers

“This is not a new normal,” Solomon said while speaking at a conference this week, adding that the nature of remote work was in conflict with his firm’s “innovative, collaborative, apprenticeship culture.”

“I don’t want another class of young people arriving at Goldman Sachs in the summer remotely,” he said. A representative for Goldman Sachs told Insider that the firm had yet to make a determination as to whether its 2021 program would be remote, in person, or a hybrid of the two. 

 

Who are the top leaders at Goldman?

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Goldman in September shuffled its setup, creating a new standalone consumer division that includes its Marcus lending unit as well as its wealth-management and private-banking businesses.

Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth business, were tapped to colead the new consumer and wealth management division and the changes went into effect on Jan. 1.

The change eliminated the former consumer and investment management division, which held the consumer business and the asset-management unit known as Goldman Sachs asset management.

The new setup matches the way Goldman reports financial results, a change the firm made in 2019 to better align with how Solomon wanted investors to think about the firm. Goldman now has four divisions: consumer and wealth management, asset management, investment banking, and global markets.

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Wealth management, asset management, and consumer banking

In Goldman Sachs’s quest to move down-market, part of its wealth management division is preparing to expand by hiring dozens of financial advisors.

Goldman has been on a quest to manage money for clients less wealthy than the multi-millionaires to whom the bank has long catered. 

Goldman launched Marcus, a digital-only consumer bank, in 2016. And in 2019, it took the plunge into the consumer credit-card business by teaming up with Apple to launch both brands’ first consumer credit-card offering. Amazon has partnered with Goldman Sachs to offer loans to its merchants. And Stripe is partnering with banks including Goldman Sachs and Citi to offer business-banking services. 

The Wall Street bank in January named two executives to spearhead a newly formed group devoted to consumer and wealth-specific strategy and acquisitions.  Jemma Wolfe and Stephan Lambert will head up the new team, according to an internal memo seen by Insider. It also tapped six people to lead product development for the consumer and wealth group. 

And Swati Bhatia, a former Stripe exec, is joining as a partner to lead Goldman’s direct-to-consumer strategy. Bhatia was most recently the chief payments risk officer at Stripe, the online payments startup last valued at $36 billion

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Dealmakers 

When Goldman announced its latest class of partners, one group was particularly well-represented on the list. Seven of the 19 investment bankers elevated to partner status came from the bank’s powerhouse technology, media, and telecommunications group.

Goldman Sachs’ entire investment-banking business ranks number one in mergers and acquisitions and bookrunning for equity capital markets, according to Dealogic

Goldman has worked on some of the hottest IPOs of 2020, including DoorDash. It’s also got a pipeline of big names lined up for this year – as Business Insider first reported, the bank has been tapped to lead cryptocurrency exchange Coinbase’s planned offering. 

The firm also played a role in massive debt financings for travel-related companies during the coronavirus pandemic. One of the solutions was a first-of-its-kind deal helping United raise $6.8 billion in debt in June by leveraging its frequent flyer program. 

The group has also seen some shakeups in recent months. Goldman Sachs veteran Gregg Lemkau, co-head of the firm’s investment banking division since 2017 and a member of Goldman’s management committee, left at the end of 2020. Instacart has tapped Nick Giovanni, Goldman Sachs’ head of the global technology, media and telecom group, to be its CFO. And in September, Goldman Sachs named new leadership in its M&A group.

In February, Susie Scher, previously co-head of global financing, was named chairman of Goldman’s global financing group. Scher is a member of the firm’s partnership committee and its executive committee for the investment-banking division. Vivek Bantwal, who was previously the chief operating officer of the global markets division, is returning to the investment bank to assume the role vacated by Scher. 

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Recent news on exits from Goldman Sachs

Ram Sundaram, the head of currencies and emerging-markets business at Goldman Sachs, is planning to exit the firm. Sundaram is a Goldman partner who was closely involved in the design and sale of the trades the bank did for the Malaysia development fund known as 1MDB. The bank reached a $3.9 billion settlement last year over its role in the trades. Sundaram has never been implicated in the scandal. 

Last June, Sundaram solidified his position as a senior leader in Goldman’s mighty markets division when a colleague’s departure made him the only executive running the emerging-markets and currencies business.

And markets division chairman Michael Daffey is leaving the bank after a 28-year career. Daffey has long been known for managing some of Goldman’s most important hedge fund clients, a role he was freed up to do last September when Solomon tapped him to become the chairman of the markets division. Prior to that, Daffey was the global co-COO of the equities business.

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What’s next for Goldman Sachs

Goldman Sachs itself is reportedly considering plans to shift asset management operations out of New York, where its headquarters tower over West Street in Manhattan’s financial district, to South Florida. Goldman’s move is not a done deal, but the reported plans echoed other New York-based firms’ recent moves.

And overall, Goldman is forging ahead with plans to divert more employees out of traditional banking capitals like New York, London, and Hong Kong to lower-cost cities including Salt Lake City, Dallas, and Bangalore, India.

Goldman’s relocation efforts are part of a broader strategy laid out at the bank’s investor day last January, which is directed at slashing $1.3 billion in costs over the course of three years.

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David Solomon wants more face time – Cuts are back at BoA -BlackRock teams up with Snowflake

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Happy Saturday, and welcome to Insider Finance. Here’s a rundown of the must-know stories from the past week:

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Goldman Sachs CEO David Solomon speaks at the 2019 Milken Institute Global Conference

Goldman CEO wants this summer’s interns in the office and says remote work has had an ‘enormous impact’ on how the bank operates

One of Wall Street’s most influential CEOs has dumped a bucket of cold water on the idea of long-term remote work and a second year of virtual summer internships, as uncertainty looms about the threat created by the coronavirus pandemic.

“This is not a new normal,” Goldman Sachs CEO David Solomon said this week, adding that the nature of remote work was in conflict with his firm’s “innovative, collaborative, apprenticeship culture.”

“I don’t want another class of young people arriving at Goldman Sachs in the summer remotely,” he said.  

Read more about Goldman’s remote work outlook, and what it means for young Wall Street.


Bank of America is firing people in its investment bank again

Amid the uncertainty and chaos in the early days of the pandemic, Bank of America committed to avoiding layoffs for the year. For staff in trading and investment banking, that provided a reprieve from the annual culling of underperformers that’s common across Wall Street. 

But now the reprieve is over. While some employees are already being handed pink slips, other senior staffers have voluntarily raised their hands to take an exit package, sources told Insider.

Get the full rundown here. 


A new stock-trading venue backed by a who’s who of Wall Street is pitching a perfect solution

A new trading venue that aims to make it easier for large investors like mutual funds and hedge funds to trade blocks of stock is preparing to go live following a fundraise from some of Wall Street’s biggest names.

PureStream Trading Technologies, started in 2018, is preparing for a launch sometime in the second quarter of this year. It’s raised $14 million from a who’s who of Wall Street investment banks and buy-side firms including Goldman Sachs, Bank of America, AllianceBernstein, and BMO Capital Markets, which bought algo platform Clearpool last year. 

Now they just need to get everyone on board.


BlackRock is teaming up with Snowflake

BlackRock is partnering with a red-hot tech company as a way of adapting one of its crown jewels to meet a customer base increasingly focused on data and coding. 

The world’s largest asset manager is launching a feature called Aladdin Data Cloud with the help of Snowflake, the cloud-data storage firm that went public last fall.  

The new feature allows customers to access and combine Aladdin’s data with their own internal or third-party data sets. It’ll also serve as a big boost for Aladdin Studio, a set of tools for developers to open up and customize Aladdin for their needs. The decision to open up Aladdin for more customization was a long time coming, Sudhir Nair, global head of the Aladdin business at BlackRock, told Insider. 

Read more about the new partnership here


Wall Street people moves of the week

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    • TIAA named Thasunda Brown Duckett as its next president and CEO. She will join the firm on May 1 from her current employer, JPMorgan Chase, where she has served as CEO of Chase Consumer Banking. At TIAA, Duckett will succeed Roger Ferguson, who is departing the firm after 13 years as chief executive. JPMorgan co-president and COO Gordon Smith said in an internal memo that, in the meantime, leadership of the consumer bank will report in to him and that the firm will announce plans around succession shortly. 
    • Maverick Capital executive Andrew Warford is leaving the $9 billion hedge fund. Warford, chairman of the firm’s stock committee and de facto head of the fund, is departing after 18 years. He was tapped to head up the stock committee in 2012 and became a managing partner in 2013 as Lee Ainslie, Maverick’s billionaire founder, gradually stepped back and delegated more power. Sources tell Insider that Warford will run his family office from Minnesota.

Here’s our full rundown of moves at firms like Goldman Sachs, Credit Suisse, and HSBC


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