Goldman Sachs Chairman and CEO David Solomon attends the 50th World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, January 21, 2020.
Dennis Balibus | Reuters
Goldman Sachs Chief Executive David Solomon is planning his third major corporate restructuring since taking over the bank in late 2018, according to people familiar with the matter.
The bank’s four main divisions will be combined into three, with trading and investment banking becoming Goldman’s largest and most important from a revenue standpoint, people familiar with the matter said.
Goldman’s loss-making consumer finance business will be split into two new divisions, with parts of its Marcus brands united into an integrated wealth and asset management business and others into a unit focused on corporate clients, the people said.
The unit, called Platform Solutions, will house Goldman’s burgeoning digital enterprise cash management business, which recently acquired fintech GreenSky, as well as a partnership with Goldman Sachs. apple and General Motorsaccording to The Wall Street Journal, which first reported on the restructuring.
Solomon has been under pressure this year as financial stocks broadly fell, leaving New York-based Goldman Sachs at the second-lowest valuation among its long-lag big bank peers Citigroup. This is based on Goldman’s price-to-tangible book value ratio, a key metric followed by investors and analysts at the bank.
The performance raised questions about Solomon’s decision to head his division, as well as internal criticism of Solomon’s high-profile hobby as an international music DJ, CNBC and other reports.