Goldman Sachs is shifting away from funding banking and buying and selling to focus as a substitute on its wealth administration enterprise and tech portfolio, as a uneven economic system takes a toll on Wall Road.
In an earnings name Tuesday with analysts, CEO David Solomon stated the financial institution was centered on attending to a “One Goldman Sachs” mannequin of built-in companies. To that finish, Solomon stated, the financial institution would mix its belongings and wealth administration models into one phase, streamline the funding banking and world markets models into one other and create a 3rd phase known as “Platform Options” that may unify fintech platforms together with transaction banking, shopper partnerships and residential enchancment lender GreenSky.
Marc Nachmann, at the moment the co-head of world markets, will lead the mixed asset administration and wealth administration companies. Dan Dees, Jim Esposito and Ashok Varadhan will run the brand new banking and world markets division. Stephanie Cohen, at the moment the worldwide co-head of shopper and wealth administration, will run the brand new tech unit. The shuffles had been first reported in an organization memo cited by the Wall Road Journal.
Goldman’s struggling retail banking unit Marcus will probably be cut up among the many new teams, with the consumer-facing aspect beneath Nachmann and the remaining beneath Cohen.
The shakeup throughout the funding financial institution’s groups represents a doubling again for Solomon, who in 2020 had cut up aside the wealth and asset administration companies.
To see the principle takeaways from Goldman’s third-quarter earnings, scroll down the slideshow. For protection of the agency’s second-quarter earnings, click on right here. For a have a look at the outcomes from the primary quarter, observe this hyperlink.