Goldman Sachs shakes up business units in push for more transparency

Goldman Sachs shakes up business units in push for more transparency
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(Reuters) – Goldman Sachs Group Inc (GS.N) will start reporting details on its consumer business for the first time and get rid of a volatile reporting line called investing and lending, in response to long-standing requests from analysts and investors.

The latest changes are part of a broader strategic overhaul under Chief Executive Officer David Solomon, who is looking to build a bigger consumer business to shield revenue from wild swings in financial markets that have pressured its trading arm.

Goldman unveiled a brand-new consumer unit that will include its Marcus online lending business, aligning its financial disclosures more closely with those of rivals JPMorgan Chase (JPM.N) and Citigroup (C.N), which boast of much larger consumer businesses.

Goldman’s move is expected to assuage concerns of investors and analysts who have long called for greater transparency across all of the bank’s major businesses.

The new consumer and wealth management segment includes management and other fees related to managing assets, providing investing and wealth advisory services. (bit.ly/39IGu45)

“The new reporting structure appears more centered around its different client segments and should help drive increased accountability in how it executes on its relatively new strategy,” Barclays analyst Jason Goldberg said.

Source: REUTERS

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