- Goldman Sachs plans to fold its expanded asset management and private wealth businesses into one unit, a reshuffle which would mark the investment bank’s third major reorganization in four years, according to Bloomberg and The Wall Street Journal, which cited unnamed sources.
- As part of the reorganization, Goldman’s retail banking platform, Marcus, will be divided into two groups. The platform’s consumer-focused operations will fall under Goldman’s asset- and wealth-management unit, the Journal reported. A subset of Marcus’ business that deals with corporate clients will become a stand-alone entity called Platform Solutions, sources told Bloomberg.
- The overhaul comes amid reports the bank aims to scale back its ambitions for Marcus amid mounting losses and growing skepticism over the performance of the consumer-focused platform.
The revamp, which the bank is expected to announce within days, will reportedly usher in leadership changes at the bank.
Goldman’s new asset- and wealth-management division will be run by Marc Nachmann, the bank’s co-head of trading, sources told Bloomberg and the Journal.
Goldman will also combine its investment-banking and trading operations under one group run by Dan Dees, Jim Esposito and Ashok Varadhan, Bloomberg reported.
The bank’s new Platform Solutions unit will be run by Stephanie Cohen, global co-head of consumer and wealth management and a member of the bank’s management committee, according to the wire service.
Installment-lending firm GreenSky, which the bank bought last year, will be housed under Platform Solutions, which will also include Goldman’s fintech platforms and its Apple and General Motors ventures, sources told the Journal.
Reports of Goldman’s reorganization comes as the bank is deepening its relationship with Apple.
In the coming months, the tech giant will offer its Apple Card holders the ability to deposit cash into a Goldman high-yield savings account, Apple announced last week.
Goldman’s reshuffle comes as the bank’s consumer products are under regulatory scrutiny from the Federal Reserve and the Consumer Financial Protection Bureau (CFPB).
The Fed is investigating losses in the bank’s Marcus unit, according to Bloomberg, and the CFPB is looking into the bank’s credit card account management practices.
Goldman will report earnings on Tuesday, and analysts are expecting the firm’s full year profits will drop by more than 40%, according to Bloomberg.