Commonwealth Bank (CBA) has entered into a strategic alliance with Goldman Sachs to allow CommSec and CBA private banking clients to access Goldman Sachs pipeline of equity offerings.
Under the deal, the bank’s customers can now access Goldman Sachs equity offerings, including IPOs. The deal will include ongoing servicing the equity capital markets needs of Commonwealth Bank’s corporate customers.
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The alliance will see Goldman Sachs offering the bank’s customers access to its range of Australian and New Zealand investment research, as well as its global macroeconomic and strategic research.
Additionally, CBA is planning shut down its institutional equities team, which is part of the Group’s institutional banking & markets business, on 16 December 2015.
The closure is expected to affect up to 50 staff.
Commonwealth Bank Group executive for business and private banking Adam Bennett said: "This alliance further enhances the products and services we deliver to our customers, providing them with high-quality independent perspectives as they invest in equity markets.
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By GlobalData"In addition, many of our CommSec advisors, Commonwealth Private bankers and wealth managers and our corporate bankers will have the added benefit of accessing research on over 3,100 stocks across five regions globally."
Goldman Sachs CEO in Australia and New Zealand Simon Rothery said: "We are delighted to be forming an alliance with the Commonwealth Bank, with exclusive access to CommSec, Australia’s largest online retail share trading platform, which will greatly enhance our combined abilities to execute a range of equity financing solutions for all of our clients."
Commonwealth Bank Group executive for institutional banking and markets Kelly Bayer Rosmarin said: "Our Institutional Equities business has high calibre people, who have led or participated in nearly $60 billion in capital raisings and government privatisations in Australia. Making the decision to discontinue this team has been difficult.
"We are also continuing to invest in our leading debt and hybrid securities capital markets offering and will continue to deliver our award winning global markets research, which includes our economics, fixed income and foreign exchange research, to complement this offering."
