Goldman Sachs Reorganization
Firm to combine asset, wealth and consumer banking into one unit
Goldman Sachs is close to announcing a sweeping reorganization of its businesses in order to keep pace with valuations of rivals like JPMorgan Chase & Co and Citigroup, according to reports in The Wall Street Journal and Bloomberg.
Pending moves include creating three divisions that combine (1) investment banking and trading as one unit and (2) transaction banking, including specialty lender GreenSky and other fintech platforms into another unit. A third division would combine asset, wealth management and restructure its consumer banking operation, Marcus, to be part of the wealth management unit.
While Goldman's trading and investment banking prowess has defined and driven the bank for years, its more recent efforts for consumer banking has sustained heavy losses and been met with skepticism from investors and internally. According to news reports, investors want Goldman to gain stability and predictability of profits from wealth management and consumer banking and be less subject to the ebb and flow of big deals.
