Goldman is planning a major reorganization to combine key units.

LONDON/New York, October 16 (Reuters) – Goldman Sachs (GS.N) is planning a major reorganization plan to consolidate its largest business into three business units and consolidate its investment banking and trading businesses into a single unit, sources said. said The plan will be announced on October 18th along with Goldman’s Q3 earnings. Sources said Goldman’s consumer finance business, Marcus, confirmed a previous Wall Street Journal report that it would be absorbed into the asset division. A spokesperson for Goldman Sachs declined to comment. Register now. Register for Free Unlimited Access to Reuters.com This is the Biggest Change Wells Fargo’s Banking Analyst Mike Mayo outlined in early 2020 the company’s plans for four core units: Investment Banking, Global Markets, Consumer and Wealth Management, and Wealth Management. Since Investor Day, he said, “I’m scratching my head.” “There are currently more questions than answers to Goldman Sachs regarding this potential restructuring.” The move comes as the Wall Street Titans seek to increase revenues from their fee-based businesses and reduce reliance on volatile trading and investment banks. income. These changes are also a sign that consumer sector Marcus is being relegated after CEO David Solomon expressed big ambitions to build a mainstream digital bank. “It’s important as an investment opportunity,” Mayo said. Since becoming CEO in 2018, Solomon has been working to expand Goldman’s presence in the retail banking space since his inauguration. However, the consumer finance sector, launched in 2016, is struggling to gain attention and has suffered from delays. Marcus has yet to open a checking account scheduled for this year. According to Bloomberg, the bank internally predicts Marcus’s losses will accelerate to more than $1.2 billion in 2022, resulting in cumulative losses of over $4 billion. Goldman declined to comment on the loss, but Solomon said the business could generate more than $4 billion in revenue by the end of 2024. The bank said in its annual report that Marcus offers digital banking products such as loans, savings and deposit certificates. We also offer credit cards through a partnership with Apple Inc (AAPL.O). The consumer business serves more than 14 million customers and has more than $100 billion in deposits and more than $16 billion in card and loan balances, the bank said. OVERHAUL KEEPS MANAGEMENT “ON ITS TOES” by GOLDMAN SACHS Combined Investment The Banking and Trading Group is overseen by Dan Dees and Jim Esposito, currently Global Co-Head of Goldman’s Investment Banking, and Ashok Varadhan, currently Co-Head of Global Investment Banking. According to Bloomberg, Marc Nachmann, global co-head of the bank’s global markets division, will help run the integrated asset and asset management division, the report said. The wealth management department added a report. “This is how Goldman Sachs keeps its executives tense and strengthens the strength that defines Goldman Sachs,” Mayo said. This reorganization of the bank takes place immediately after the globalization of the bank. Goldman Sachs reported job cuts in September that could affect hundreds of bankers. In the second quarter, Goldman reported a better-than-expected drop in earnings of 48% as fixed income and commodity trading surged. Like its Wall Street competitors, the bank is expected to report. According to analyst forecasts compiled by Refinitiv, Goldman Sachs expects third-quarter net income of $5.38 billion to $2.77 billion. Barclays said in a recent report that given the challenging operating environment, Goldman is scrutinizing all upfront spending and investment plans to make the most of its resources. Register now for unlimited access to Reuters. comReports by Pamela Barbaglia of London, Lavanya Ahire and Akriti Sharma of Bengaluru, Selena Li of Hong Kong, and Saeed Azhar of New York; Edited by Sherry Jacob-Phillips and Muralikumar Anantharaman Our Criterion: Thomson Reuters Trust Principle.
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