Goldman Sachs

Goldman Sachs is a leading global investment bank and financial services firm headquartered in New York City. Founded in 1869, it is a primary dealer in the United States Treasury security market and a major player in investment banking, asset management, and securities trading. The firm is known for its influential alumni network, often referred to as "Government Sachs" due to the number of its former employees who have taken senior roles in the U.S. government and other major institutions worldwide.

History

The firm was founded in 1869 by Marcus Goldman, a German Jewish immigrant, and later joined by his son-in-law Samuel Sachs. Initially focused on commercial paper, it became a member of the New York Stock Exchange in 1896. Under the leadership of Sidney Weinberg, who steered the firm for decades from the 1930s, it established its reputation in investment banking, advising major corporations like Ford Motor Company on its landmark initial public offering in 1956. Key mergers, such as with J. Aron & Company in 1981, expanded its commodities trading capabilities. The firm underwent a significant transformation with its own IPO in 1999, transitioning from a private partnership to a public company listed on the New York Stock Exchange. Throughout the 2007–2008 financial crisis, it received funds from the Troubled Asset Relief Program and converted to a bank holding company status under the Federal Reserve.

Business segments

Its operations are divided into four core segments. The **Global Banking & Markets** segment encompasses its traditional investment banking activities, including advisory services for mergers and acquisitions and underwriting of debt and equity offerings, alongside its sales and trading divisions for fixed income, currency, and commodities (FICC) and equities. The **Asset & Wealth Management** segment provides investment management services and financial advice to institutions and high-net-worth individuals, managing assets across various classes. The **Platform Solutions** segment focuses on developing financial technology, including transaction banking and credit card partnerships, such as with Apple Inc. for the Apple Card. The firm also maintains significant activities in private equity and principal investing through its **Equity Investments** arm.

Corporate governance

The firm is governed by a Board of Directors elected by shareholders, with a separate office of the Chairman and the Chief Executive Officer. Notable former leaders include Lloyd Blankfein, who served as CEO during the financial crisis, and Henry Paulson, who later became the United States Secretary of the Treasury. The current leadership includes CEO David Solomon. Key board committees, such as the Audit Committee, Risk Committee, and Compensation Committee, oversee critical functions. Its corporate structure and risk management practices are closely scrutinized by regulators including the Securities and Exchange Commission and the Federal Reserve Bank of New York.

Controversies and legal issues

The firm has been involved in numerous high-profile legal and ethical controversies. It faced intense scrutiny for its role in the financial crisis, particularly regarding its marketing of collateralized debt obligations (CDOs) like Abacus 2007-AC1, leading to a historic settlement with the Securities and Exchange Commission for securities fraud. It was a central figure in the 1Malaysia Development Berhad scandal (1MDB), resulting in billions in penalties from the U.S. Department of Justice and regulators in multiple countries. Other notable issues include its involvement in the Libor scandal, allegations of gender discrimination in the case of *Chen-Oster v. Goldman Sachs*, and criticism over its advising roles for controversial clients like the government of Saudi Arabia during the murder of Jamal Khashoggi.

Financial performance

As a publicly traded company (ticker: NYSE:GS), its financial results are a key indicator of Wall Street health. Revenue is heavily influenced by global markets activity, with the **Global Banking & Markets** segment typically being the largest contributor. Performance metrics like return on equity and tier 1 capital ratio are closely watched by analysts. The firm reported significant losses during the financial crisis but returned to strong profitability in subsequent years, often distributing substantial bonus pools to employees. Its financial resilience is tested during periods of market volatility, such as the COVID-19 pandemic and the 2022 stock market decline.

Category:Investment banks Category:Companies listed on the New York Stock Exchange Category:Financial services companies based in New York City