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October 17, 2022

Goldman Sachs plans to merge investment banking and trading business

Goldman Sachs Group is looking to integrate its major businesses into three units amid an overhaul measure, the Wall Street Journal (WSJ) has reported.

Under the reshuffle, the firm’s investment banking and trading businesses will be combined to form one single unit.

The bank will establish a separate division by uniting its asset and wealth management arm, added the publication citing people with knowledge of the development.

Goldman Sachs’ consumer-banking division, Marcus, will operate under the new asset and wealth management unit, the sources said.

In addition, the firm will set up a third arm that will include its transaction banking as well as financial-technology outfits and specialty lender GreenSky.

Goldman Sachs’ venture firms with Apple and General Motors will also be included in this arm.

The firm could reveal the plan tomorrow, along with its third quarter results, reported Reuters.

According to the WSJ, even though the senior management reshuffle is not clear yet, Goldman Sachs might place several representatives in new positions.

The investment bank’s joint-head of trading, Marc Nachmann, will be assigned to help manage the merged asset and wealth management unit, stated the people.

The proposed overhaul represents one of the initiatives undertaken by the bank’s CEO David Solomon to focus on businesses that garner stable income in any situation.

Through the plan, Goldman Sachs also aims to address doubts raised by its investors and some of its own officials over its consumer banking programme.

Despite having a profitable trading and investment-banking business, the bank’s investors frown upon the success of the division. According to some investors, the functioning of the division is not feasible when the markets run through a rough patch.

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