Goldman Sachs is transforming under CEO David Solomon

Goldman Sachs CEO David Solomon
Goldman Sachs CEO David Solomon.

Goldman Sachs is transforming 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.

On Tuesday, the firm’s second-quarter 2021 earnings results topped expectations, with the bank reporting its second-highest net revenues on record. Its investment bank raked in more than $3.6 billion in revenue.

But the bank’s top ranks have also seen turnover this year, shedding execs within its management committee and partnership.

At the junior level, some young bankers are frustrated about not yet receiving base salary raises even as some bank competitors have raised pay.

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:


Junior bankers in focus

wall street trader sad
Junior bankers have vented their frustrations to Goldman Sachs executives in recent months.

Goldman Sachs juniors vented this spring about 100-hour work-weeks.

So far, they’ve yet to benefit from it in the way of raises or bonuses, though Solomon hinted on the firm’s second-quarter earnings call that an update to their compensation policy might come in August.

The bank has been looking to hire reinforcements and fast-track tech initiatives to streamline work.

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 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. Goldman has also brought in new hires, including Peeyush Nahar, an executive at Uber, to head the bank’s consumer business.

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 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

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

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?

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:

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

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

Inside a massive transformation at Goldman Sachs

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, on Tuesday 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. 

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:

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

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.

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Inside a massive transformation at powerhouse Wall Street bank Goldman Sachs

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. 

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, are about to undergo a big leadership transition.

Here’s everything you need to know:

Who’s running the show 

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, will colead the new consumer and wealth management division and the changes go into effect on Jan. 1.

The change eliminates 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 last year to better align with how Solomon wanted investors to think about the firm. Goldman will now have four divisions: consumer and wealth management, asset management, investment banking, and global markets.

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Wealth 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 in the coming year.

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

The firm is also set to expand its consumer arm by picking up General Motors’ credit-card business for a price tag of roughly $2.5 billion. Goldman launched Marcus, a digital-only consumer bank, in 2016. And last year, it took the plunge into the consumer credit-card business by teaming up with Apple to launch both brands’ first consumer credit-card offering.

The Apple Card hasn’t been the only way that Goldman is teaming up with Big Tech names. 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. 

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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 the year, including DoorDash. It’s also got a pipeline of big names lined up for next 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 this year. Goldman Sachs veteran Gregg Lemkau, co-head of the firm’s investment banking division since 2017 and a member of Goldman’s management committee, is departing at the end of 2020. And in September, Goldman Sachs named new leadership in its M&A group.

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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 in 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