Goldman Sachs plans major reorganisation
Goldman Sachs is planning to fold its crown jewel trading and investment banking business into one unit as it shrinks from four to three divisions.
The Wall Street bank is planning a major reorganisation that would see it merge its asset and wealth management divisions and shift part of its money-losing consumer business into a newly formed unit, according to people familiar with the matter.
The combined asset and wealth division will include its online retail bank Marcus and be led by Marc Nachmann, at present the co-head of Goldman’s trading division.
The market has cheered Morgan Stanley’s expansion into more stable fee-generating businesses such as wealth management, as opposed to volatile investment banking and trading activities.
Solomon has tried to expand into more predictable businesses such as asset management and transaction banking, and offset the volatility of the trading business, but has so far struggled to meaningfully change Goldman’s revenue mix away from investment banking.
This story originally appeared on: Financial Times - Author:Joshua Franklin
