Goldman Sachs is going through a massive transformation under CEO David Solomon

Goldman Sachs CEO David Solomon.

Goldman Sachs CEO David Solomon is taking big steps to transform the bank.
Goldman has been pushing into wealth management and consumer banking.
Here’s a look at the key initiatives and players.
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Goldman Sachs is going through a big transformation under CEO David Solomon.

The Wall Street powerhouse has taken steps involving transparency and inclusion to change up its culture. After its first-ever investor day in early 2020, the firm is looking to execute on key financial targets. Goldman has also been making big pushes into wealth management and consumer banking. In mid-September, Goldman revealed plans to buy home-improvement installment lender GreenSky in an all-stock deal valued at $2.2 billion.

Goldman is set to update investors when it reports its Q3 results on Friday, October 15. Here’s a rundown of the must-know news at Goldman, including hires and exits, as well as deep dives on its Marcus consumer bank and wealth-management push.

Latest news:

Goldman Sachs consumer exec Stephanie Cohen explains why the Wall Street bank just inked a $2.2 billion home-improvement lending dealGoldman Sachs CFO Stephen Scherr, a key architect of the firm’s Marcus consumer bank, is retiringGoldman Sachs expects its lending business to mass affluent and RIA clients to hit $10 billion this year as the wealthy take out loans to cover taxes and all-cash offers

Goldman’s dealmakers

Goldman Sachs’ global co-heads of investment banking, Jim Esposito and Dan Dees

When Goldman announced its latest class of partners, one group was particularly well-represented on the list. Seven of the 19 investment bankers elevated to partner status came from the bank’s powerhouse technology, media, and telecommunications group.

In global M&A, Goldman’s snared 11.5% of fees on all completed deals so far in 2021, up from 7.8% for the entirety of 2020, according to Refinitiv data. Completed deals, like the sale of home decor retailer At Home Group to Hellman & Friedman in July, are widening the gap with peers. JPMorgan’s picked up 8.6% of fee share so far, from 6% last year, while Morgan Stanley has 7.1% of the fee wallet this year, compared to 6.6% in 2020.

The group has also seen some shakeups. Goldman Sachs veteran Gregg Lemkau, co-head of the firm’s investment banking division since 2017 and a member of Goldman’s management committee, left at the end of 2020. Instacart tapped Nick Giovanni, former head of Goldman’s global technology, media and telecom group, to be its CFO. And in September 2020, Goldman Sachs named new leadership in its M&A group.

Read more:

Goldman Sachs is pushing rival bankers to expletive-ridden tirades as it swoops in to win even more blockbuster M&AFrom cross-border M&A to more mega buyouts, top Goldman Sachs bankers map out why the dealmaking boom is just getting startedGoldman Sachs tapped Susie Scher as chairman of its global financing group, plus other changes in investment banking leadershipMeet Kim Posnett, the youngest head of a powerful team inside Goldman Sachs’ investment bank that’s focused on pitching new, innovative ways to get deals doneRead the full memo naming the new co-heads of Goldman Sachs’ tech team as top dealmaker Nick Giovanni exits

Goldman’s wealth-management push

Meena Flynn and John Mallory cohead the private wealth business at Goldman Sachs.

Goldman, a firm synonymous with enormous wealth, has in recent years tried to reshape itself as a bank that can count someone with just $1,000 to invest as a client just as it has long done business with large companies and the very wealthy.

It launched Marcus Invest, a robo-advisor with a $1,000 minimum. And it has reorganized how its wealth businesses are situated, creating a new internal consumer and wealth management division that went into effect at the start of this year. Goldman has some 800 advisors within private wealth globally.

Goldman Sachs just hired a Schwab exec who pioneered the broker’s Netflix-style pricing as the bank makes an aggressive push into wealthGoldman Sachs wants to hold onto its richest clients’ kids. The bank’s private wealth heads explain how its Marcus unit is helping them do that.Goldman Sachs execs lay out plans for its new robo-advisor as it takes on fintechs like Wealthfront and Betterment in a fiercely competitive spaceGoldman Sachs is hiring dozens of advisors for the firm’s wealth business, and says it’s getting a boost from companies pushing early retirements and layoffs

Who are the top leaders at Goldman?

Stephanie Cohen, Solomon, Stephen Scherr, and John Waldron.

Goldman in September 2020 shuffled its setup, creating a new standalone consumer division that includes its Marcus lending unit as well as its wealth-management and private-banking businesses.

Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth business, were tapped to colead the new consumer and wealth management division and the changes went into effect on Jan. 1.

The new setup matches the way Goldman reports financial results, a change the firm made in 2019 to better align with how Solomon wanted investors to think about the firm. Goldman now has four divisions: consumer and wealth management, asset management, investment banking, and global markets.

Read more:

Goldman Sachs CEO David Solomon is shaking up the bank with his hard-driving style. Here’s what’s pushing a herd of partners to the exits.Goldman Sachs President John Waldron just laid out 3 ways the bank is aiming to win the war on burnout, and they don’t include special bonuses or fancy vacationsAn exodus is under way at Goldman Sachs. Here’s a running list of all the partners jumping ship and where they’re heading.Inside the rise of Stephanie Cohen, the Goldman Sachs dealmaker leading a make-or-break push to take on Main StreetHere’s our exclusive Goldman Sachs org chart mapping out the hierarchy of top execs

Junior bankers in focus

People enter and exit 200 West Street the Goldman Sachs building in New York.

Goldman Sachs juniors vented this spring about 100-hour work-weeks. The bank has bumped base pay for investment-banking analysts. That move was soon followed by raises for some people in divisions including wealth and markets.

The bank has been looking to hire reinforcements and fast-track tech initiatives to streamline work.

Read more:

Goldman Sachs has raised starting salaries for staffers in markets, wealth, and research to $110,000 following bumps for first-year bankers earlier this monthGoldman Sachs offices are open. But getting junior bankers to return full time is proving tough.Goldman Sachs President John Waldron just laid out 3 ways the bank is aiming to win the war on burnout, and they don’t include special bonuses or fancy vacationsHere are 3 ways Goldman Sachs is using automation to drum up new business for investment bankers, from pitch books to ECM data

The lastest news on Goldman’s consumer banking push

Marcus offers savings and credit products online and through its app.

Goldman Sachs has built its consumer-banking arm into a $1 billion business over the past five years.

But it’s seen a wave of departures including the exits of top Marcus bosses Omer Ismail and David Stark. And JPMorgan has poached the head of product at Marcus to join the bank’s digital and product leadership team for consumer and community banking. Goldman has also brought in new hires, including Peeyush Nahar, an executive at Uber, to head the bank’s consumer business.

Read more:

Goldman Sachs just tapped Stephen Scherr’s chief of staff to serve as CFO of its consumer business. Read the full memo announcing the promotion.Goldman Sachs just poached an Uber engineering exec to head its consumer business. Read the full memo announcing the hire.Burnout, blown deadlines, and a tech-talent exodus: How Goldman Sachs’ Marcus is struggling to live up to its lofty consumer-banking ambitionsGoldman Sachs is hiring up to 300 engineers in its consumer business after product sprints triggered burnout and a tech exodusGoldman Sachs responded to burnout fears in its consumer division by making evenings and Fridays ‘audio only,’ encouraging staff to go for walks and talk on the phone insteadJPMorgan Chase poached a top Marcus exec along with key hires from Wells Fargo and Google to support a ‘huge agenda’ for digital banking

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