A local news outlet reported on Sunday, citing people familiar with the subject, that Goldman Sachs Group Inc. wants to divide its largest businesses into three divisions.
Goldman will consolidate its investment banking and trading businesses into one unit while integrating asset and wealth management into another, according to the report. This will be one of the greatest organisational changes in the history of the Wall Street firm.
According to the report, Marcus, Goldman’s consumer banking division, will be a part of the asset and wealth management division. It is also expected that a third division will oversee transaction banking and the bank’s portfolio of financial technology platforms. The anonymous sources claimed that the restructuring plans should be made public within a few days. Tuesday marks the third quarter results release for Goldman.
With the new changes, it is possible that at least a few executives will have new jobs, but it is unlikely that the top leadership of the bank will not change. The bank’s worldwide co-head of the Global Markets Division, Marc Nachmann, will relocate to assist in leading the newly unified asset and wealth management department.
The restructuring followed the bank’s September global layoffs that would have affected hundreds of bankers. Due to increases in fixed-income and commodities trading, it posted a second-quarter profit decline of 48 percent, beating expectations.
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