- Goldman Sachs CEO David Solomon is intriguing big steps to transform the bank.
- Goldman has been pushing into consumer banking and wealth management.
- But a slew of consorts have jumped ship, and Marcus has seen a big talent exodus.
- Visit the Business section of Insider for more detective stories.
Goldman Sachs is going through some big changes under CEO David Solomon.
The Wall Street bank has entranced steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is wasting on targets including multi-year cost-cutting plans. And it’s making big pushes into wealth management and consumer banking.
Goldman smashed guesses and set a revenue record in the first quarter, and its stock price has soared. Investors and Wall Street analysts are singing Solomon’s honours.
But the firm’s top ranks have seen almost unprecedented turnover, with six members of the management committee departing all through the past year.
And junior bankers have been so overworked that they put together two presentations to express their unhappiness to directorate. Engineers in a consumer division that Goldman spent billions to build have quit in droves.
Here’s a rundown of the must-know front-page news at Goldman, including the latest hires and exits, as well as deep dives on its Marcus consumer bank and wealth-management zing.
Who are the top leaders at Goldman?
Cindy Ord/Getty; Paul Morigi/Getty; Sean Zanni/Patrick McMullan via Getty; Jemal Countess/Getty; Shayanne Gal/Obligation Insider
Goldman in September shuffled its setup, creating a new standalone consumer division that includes its Marcus bestowing unit as well as its wealth-management and private-banking businesses.
Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth function, were tapped to colead the new consumer and wealth management division and the changes went into effect on Jan. 1.
The new setup unions the way Goldman reports financial results, a change the firm made in 2019 to better align with how Solomon thirst investors to think about the firm. Goldman now has four divisions: consumer and wealth management, asset management, investment banking, and far-reaching markets.
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The lastest news on Goldman’s Marcus
Reuters
Goldman Sachs has built its consumer-banking arm into a $1 billion business over the past five years.
But it’s aided a wave of recent departures including the exits of top Marcus bosses Omer Ismail and David Stark. And JPMorgan has poached the big cheese of product at Marcus to join the bank’s digital and product leadership team for consumer and community banking, while CNBC initially reported in May that Sherry Ann Mohan, chief financial officer for Goldman’s consumer business, is leaving to serve as CFO of JPMorgan’s concern banking division beginning in August.
Insiders explained how Goldman Sachs’ hard-charging culture had contributed to exhaustion and drunk 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 masterminds.
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Goldman’s wealth-management push
Goldman Sachs
Goldman, a firm synonymous with enormous wealth, has in recent years evaluated to reshape itself as a bank that can count someone with just $1,000 to invest as a client just as it has dream of done business with large companies and the very wealthy.
It launched Marcus Invest, a robo-advisor with a $1,000 littlest, earlier this year. And it has reorganized how its wealth businesses are situated entirely, creating a new internal consumer and wealth control division that went into effect at the start of this year. Goldman has some 800 advisors within secluded wealth globally.
Goldman’s dealmakers
When Goldman announced its latest class of partners, one group was particularly well-represented on the tilt. Seven of the 19 investment bankers elevated to partner status came from the bank’s powerhouse technology, media, and telecommunications arrange.
The group has also seen some shakeups in recent months. Goldman Sachs veteran Gregg Lemkau, co-head of the decided’s investment banking division since 2017 and a member of Goldman’s management committee, left at the end of 2020. Instacart has tapped Also gaol Giovanni, Goldman Sachs’ head of the global technology, media and telecom group, to be its CFO. And in September, Goldman Sachs named new regulation in its M&A group.
Goldman has also been riding the
SPAC
boom, which went into overdrive in the first three-month period. It ranked No. 2 among banks in terms of SPAC IPOs year-to-date by mid-March.
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