Goldman to Shake Up Wealth, Other Units in Latest Overhaul

Goldman Sachs Group Inc’s David Solomon is embarking on his third major reorganization in just four years as chief executive officer, undoing some of the signature moves he made as recently as 2020.

The Wall Street giant plans to once again combine its expanded asset management and private wealth businesses into one unit run by Marc Nachmann, according to people familiar with the matter.

Goldman will also fuse its investment-banking and trading operations under one group run by Dan Dees, Jim Esposito and Ashok Varadhan. The money-losing consumer unit will be broken up.

The moves mark a reversal for Solomon, 60, who had forged ahead with plans to separate the asset management and wealth business two years ago despite skepticism within the bank. He was also reluctant to combine investment banking and trading into one group, as the firm looked to talk up other fee-based businesses to win over shareholders.

No More B2C

Most visibly, he’s disbanding the direct-to-consumer efforts, cutting short the retail banking dreams that he had spelled out in his early days as CEO.

Cost overruns and missed profitability goals have set off a rising tide of discontent inside the firm, questions from regulators and the dismay of shareholders, leading up to a reorienting of those operations and the latest group revamp.

A smaller subset of the consumer-banking business that deals with corporate partners will emerge as a standalone entity called Platform Solutions run by Stephanie Cohen, the people said, asking not to be identified discussing information that’s not yet public.

That includes GreenSky, the installment-lending firm it bought last year, along with its credit-card ventures and transaction banking, which handles corporate deposits and was previously part of the investment-banking group.

The other piece of the retail-banking unit that dealt directly with consumers under the Marcus brand will get pushed into its wealth business as a more curtailed effort.