Hedge funds are poaching top volatility traders from Wall Street banks

hedge funds versus bankers in pandemic 4x3
From left to right: Millennium founder Izzy Englander, Citadel founder Ken Griffin, Balyasny founder Dmitry Balyasny, Citigroup CEO Jane Fraser, Goldman Sachs CEO David Solomon, and Bank of America CEO Brian Moynihan.

  • Buy-side trading firms have poached a slew of star derivatives traders from investment banks.
  • The defections, which follow blowout volatility trading hauls in 2020, leave some banks shorthanded.
  • Subscribe now to read the full story here.

The derivatives traders that thrived during 2020’s once-in-a-decade market shock are now some of the hottest commodities on the street.

But unlike recent years, where Wall Street banks snatched senior talent from each other, marquee hedge funds like Balyasny, Citadel, and Millennium are plundering the rosters at Bank of America, Citigroup, and Goldman Sachs as they deploy their massive hordes of capital and chase riches with expanding volatility strategies of their own.

“Usually it’s just sell-side musical chairs,” one veteran volatility trader told Insider. “This is making things more interesting as the buy-side is scooping up so many people,” leaving fewer senior traders at the banks.

Here’s a look at just some of the recent hires:

Subscribe now for the full rundown on which top traders have made moves and to get all the details from execs and recruiters on what’s driving the poaching frenzy

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

4 things you need to know about the future of hybrid and remote work

Spotify employees, spotify office
Spotify’s new work-from-anywhere program will promote flexibility and diversity, executives told Insider.

  • As more Americans get vaccinated, companies are starting to reconsider their reopening plans.
  • Employers like Spotify and TIAA are investing in hybrid work models.
  • This guide explains what you need to know about the future of hybrid work.
  • See more stories on Insider’s business page.

The post-pandemic workplace is going to look a lot different. Mostly, there will be fewer people in the office.

As more Americans get vaccinated, companies are starting to think about what their reopening plans might look like. Some employers, like Spotify and TIAA have decided to invest in hybrid work models, giving employees the flexibility to work from the office, their homes, or another location.

Insider compiled a guide with the four most important things to know about the future of hybrid work.

1. Remote work is leading to burnout.

Burnout and fatigue are familiar themes of pandemic life. Meetings are booming, workdays are lengthening. And at the same time, per recent LinkedIn survey data, 74% of employees are taking “shelter” in their current job as a way of mitigating risk during tumultuous times.

While what it means to work from home isn’t going to be the same in post-pandemic life, these remote and hybrid – where you come into the office some of the time – work styles are likely to. But conflict is rising around the best way to do it without sacrificing quality, company success, or personal wellbeing.

Read more:

Remote work can unlock productivity or push burnout. Here’s how smart companies are planning for our ‘hybrid’ and WFH future.

Use this 6-step checklist to conquer workplace burnout, protect your mental health, and re-energize your team

A day off work and ‘Zoom-free Fridays’ aren’t going to cut it. Here’s how to really tackle burnout.

Consulting confessions: 6 current and former staffers at Deloitte, PwC, and other top firms detail pandemic burnout

2. Prioritizing camaraderie and communication can improve remote-work culture.

Open lines of communication are key to improving the culture when you’re working from home. Leaders ned to ensure that all employees feel informed. It’s also important to give employees the opportunity to connect in more casual settings, like a virtual happy hour, to help them feel included.

Read more:

A Facebook exec shares 4 strategies any leader can use to improve communication and camaraderie when working remotely

Etsy’s chief operations, strategy, and people officer shares how the company maintains its culture while working remotely

3. The rise of remote work also means the rise of the virtual headquarters.

The pandemic means some employers have reduced the amount of real estate they own or rent. Some are getting rid of offices entirely.

But this presents a new challenge for employers, who now need to recapture the visibility, casual conversations, and collaboration that came so easily in person. Their best bet, technologists working to solve the problem said, is to create a virtual HQ – a suite of office tools that allow employees to work collaboratively from home.

Read more:

The ‘virtual headquarters’ are coming

4. Employers are debating the type of work that makes the most sense for their workforce.

Hybrid work doesn’t work for everyone. Wall Street, for example, wants employees back in the office.

But employees will be looking for more flexibility post pandemic. Here’s how companies are providing flexibility to their employees.

Read more:

TIAA’s HR chief shares the thinking behind its new hybrid work model that sorts employees into 4 categories of flexibility

H&R Block’s CEO and HR chief explain how the company decided against fully remote work – and why they expect staff in the office 3 days a week

Spotify’s new remote-work plan ‘isn’t in response to the pandemic’ – it’s a bet on diversity

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

The rise of Cathie Wood, the rockstar stock-picker whose ETFs are dominating 2021

cathie wood ceo ark invest profile 2x1
Ark Invest’s Cathie Wood.

So far, this year has belonged to Cathie Wood. You could argue last year did too.

The founder of ARK Invest has seen flows into her active exchange-traded funds beat those of massive franchises like BlackRock’s iShares, thanks to her blockbuster 2020 performance, which was driven by bets into mega-growth stocks like Tesla.

Her funds have delivered eye-popping returns, with her flagship fund up more than 150% in 2020.

Wood has built such a large following that an announcement about a new ARK fund moved markets. Her podcast has landed big-name guests such as Elon Musk. She’s become a favorite of the r/WallStreetBets crowd.

Insider spoke with investors in both Wood’s business and funds, longtime colleagues, analysts at her firm, and fans who chart her rise through newsletters and memes. They describe her leadership, which comes with four decades of investing experience, and her curiosity, which keeps her analysts on their toes.

But threats are also looming: Talk of a stock-market bubble and an impending correction are brewing; the easy conditions created by massive fiscal and monetary stimulus could taper off as the economy recovers from the pandemic; and Wood’s highly concentrated funds have ballooned, which has raised concerns about capacity.

SUBSCRIBE NOW TO READ THE FULL STORY: Cathie Wood made a career betting on the future. Insiders discuss how the ARK Invest founder won the funds (and hearts) of memelord traders and boomer investors alike.

Read the original article on Business Insider

How to get your child into an elite, big city preschool, according to admissions consultants, directors, and parents who’ve done it

The Washington Market School
The Washington Market School is one of experts’ top choices for NYC programs.

  • Private preschools can be as notoriously difficult to get into as Ivy League colleges. 
  • Every step in the process counts, from the initial tour of the school to the thank you note you send afterward.
  • Insider regularly interviews preschool consultants, directors, and successful parents regarding best practices for landing a spot in the program of your choice. You can read all about it by subscribing to Insider.

Trying to get your kid into a prestigious preschool in a major city like New York or LA can be as competitive as trying to get them into an Ivy League institution. Parents often have to fight against limited class sizes, legacy policies, and religious affiliations.

The cutthroat landscape is a result of families eager to give their children the best education around, starting as soon as possible. To get accepted into a private kindergarten or elementary school, kids must come with strong social skills, pre-math and reading skills, and independence already formed, which makes a solid preschool foundation all the more crucial.

Luckily, parents can help their child get into the school of their choice if they take the following steps, backed by education consultants who’ve spent years guiding parents through the preschool application process.

Pick your program

Some preschools show preference toward students from certain religious backgrounds or who have a parent or sibling who attended the school previously. The first step in the process is to decide which preschool is best for your child’s individual circumstances. There are dozens of choices, but Insider has dug into the best programs and what it takes to get in. 

Read more: The 12 most prestigious preschools in New York City and how to get in, according to parents and consultants

The 11 most prestigious preschools in Los Angeles and how to get in, according to an admissions consultant and school directors

How to get your kid into NYC’s prestigious 92nd Street Y Nursery School, according to 3 preschool consultants and a parent

Prestigious preschools are notorious for evaluating family values. Consultants share how to best align yours with your ideal program.

Fill out your application with care

Application instructions must be followed closely if you want to impress admissions officers. These schools will want high-quality photos of your child and your family, and if you’re a two-parent family, both should attend the interview. Ask good questions, and remember the preschool will be evaluating both you and your child.

Read more: 5 important steps for getting your kid into an elite preschool, according to a veteran admissions consultant

Getting your kid into the Ivy League of preschools is notoriously cutthroat. Real parents unpacked their greatest horror stories of applying.

A Manhattan-based preschool consultant on how to handle your kid landing on a program’s waitlist – and best practices for nabbing a spot

Nail the interview and tour

Once you’ve toured, interviewed, or visited, send a thank you note. Remind the school of your family along with anything mentioned during your time there that you had in common with the tour guide. Some parents even take this a step further by providing lavish gifts to admissions directors, donating auction items for school fundraisers, or substantially subsidizing school events. 

Read more: The lavish gifts and extreme moves wealthy parents use to get their kids into elite preschools, like recommendation letters from Bill Clinton and catering from 5-star restaurants

Parents should always write a thank you note after a preschool interview or tour. An expert shares what it should include, and 3 example letters that hit the mark.

4 NYC parents who got their kids into prestigious preschools share how they impressed admissions and nailed the interview

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

TAXES: Everything small business owners need to know in 2021

Black business owner entrepreneur
  • 2021 will be an important year for small businesses to file their taxes.
  • Tax credits and incentives can be an effective way to offset losses from a difficult year.
  • But very few small businesses take advantage of all the credits available to them.
  • Visit the Business section of Insider for more stories.

2021 will be an important year for small businesses to file their taxes, as many are still reeling from financial losses during the pandemic. But tax credits and deductions can be used to offset some of your costs.

Join us March 2 at 1 PM EST for a webinar on how small businesses can master their taxes. Our panel of tax experts will answer your questions, which you can submit here. Register for the live event here

Getting tax credits and incentives

Business tax credits and incentives can be an effective way to save money or offset losses from a difficult year, but many small businesses don’t take advantage of them because they’re unaware of what’s available to them. The first step to getting them will be finding what your company qualifies for. Then, you’ll need to regularly monitor compliance. 

Some examples of tax credits would be if you provide childcare services for your employees or employ disadvantaged groups, such as the formerly incarcerated, long-term unemployment recipients, veterans, and summer youth.

Read more: This tax season, businesses can get credits for creating jobs, providing employee benefits, and using green energy

6 important tax credits for PPP borrowers

Small businesses can take advantage of both federal aid under the CARES Act and certain tax deductions, including the employee retention tax credit and research and development credits. In addition, the energy-efficient building tax deduction and excise alcohol tax break were made permanent.  

The business meals tax credit, commonly known as the “three-martini lunch,” has been temporarily increased from 50% to a full 100% deduction.

Read more: PPP borrowers can now claim 6 important tax credits – a major change from the original rule 

More about the employee retention credit

The Employee Retention Credit provides up to $14,000 per employee for eligible businesses in 2021. Businesses are eligible to claim this tax credit if they experienced full or partial shutdowns due to government orders during the pandemic or can show a 20% drop in quarterly revenue compared with the same quarter in 2019.

Read more: A business tax credit for keeping employees may be more helpful than a PPP loan – and you could be eligible for both

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. 

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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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