Goldman Sachs has unveiled plans to undertake the largest restructuring in its history.
According to the Wall Street Journal, Goldman plans to combine its flagship investment banking and trading business into one unit while merging asset and wealth management into another. Marcus, Goldman's consumer-banking unit, will join the asset and wealth management division, and a third division will become the home of transaction banking. The third division will include the bank's portfolio of financial-technology platforms, specialty lender GreenSky, and its ventures with Apple Inc. and General Motors Co.
Goldman seeks to enlarge the business units that command higher valuations on Wall Street. Managing wealthy people's money and overseeing funds for pensions and other deep-pocketed institutions are more profitable than other financial services, according to leadership at Goldman Sachs. Goldman has invested heavily in building its consumer bank. Executives believe that folding the unit into its asset and wealth management arm will create more opportunities to offer banking services to wealthy individuals.
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