Money & The Economy

Major Investment Bank Plans A Massive Overhaul

Goldman Sachs is planning to undergo a massive restructuring that refocuses the investment giant in a bid to overcome investor’s concerns about the long-term health of the company, The Wall Street Journal reported Sunday.

The restructuring will reorganize the company into three units, one combining investment-banking and trading, one merging asset, wealth management and consumer banking, and one managing transaction banking and financial technology, the WSJ reported. Goldman Sachs has traditionally focused on investment banking and trading, but the volatility in those industries has left some investors wary of the banking giant’s long-term viability, prompting CEO David Solomon to refocus towards fee-based banking like consumer banking, wealth-management and transaction banking.

Despite Goldman’s shares being worth more than competitors JPMorgan and Morgan Stanley, they are underperforming compared to investor expectations, the WSJ reported. By focusing on asset management for wealthy individuals or institutions, alongside a more traditional consumer banking model, Goldman would be putting a greater emphasis on reliable revenue sources valued more highly by typical investors.

The company’s existing consumer banking arm, known as Marcus, has struggled to gain a foothold in the market, and internal forecasts predict that the unit will lose more than $4 billion, according to Reuters, whose sources confirmed the WSJ reporting. Despite promising that the unit would offer a checking account by the end of the year, Marcus is yet to offer one, although it does offer loans, savings accounts and credit cards.

Goldman Sachs is set to fire approximately 500 employees this fall, as business slows and performance reviews that were suspended during pandemic-era policy return. The company is expected to announce the restructuring alongside third quarter financial results on Oct. 18.

Goldman Sachs did not immediately respond to the Daily Caller News Foundation’s request for comment.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact

John Hugh DeMastri

Published by
John Hugh DeMastri

Recent Posts

Master of Puppets

If you think Biden is the only puppet Obama controls, you have another thing coming.

42 mins ago

Lyin’ Eyes

Pretty sure it's not our eyes that are lying...

42 mins ago

Straighten Up and Fly Right!

As you read, are you wearing your shoes? Is your sink shiny? Can you walk…

42 mins ago

Majority Of Hispanics Favor Deporting ‘All’ Illegal Immigrants: POLL

An outright majority of Hispanic Americans are in favor of a mass deportation plan for…

7 hours ago

Why Policymakers Should Reject The IEA’s Silly Peak Oil Notions

In a statement published on the OPEC website Thursday, Secretary General Haitham Al Ghais said…

8 hours ago

Foreign-Born Workers Are Taking Americans’ Jobs

Something very strange is going on in America’s labor market. The employer’s survey in the…

8 hours ago