10.21.22 Today’s Insights about Goldman Sachs from the Wall Street Journal
It seems that the desire for order among chaos has hit Wall Street, as well.
Goldman Sachs announced today plans to combine their current four businesses into three divisions, with the goal of fostering more consistent returns. Ahead of Wednesday, October 18’s Quarterly Call, the Wall Street Journal shared that Goldman intends to integrate its investment banking and trading businesses, which have traditionally been separate. While lucrative, these areas are more volatile during downturns, making it challenging to predict returns.
The re-organization provides greater support to the bank’s consumer side, which will be merged with its asset and wealth management arms, and whose revenues are more consistent due to fee-based services.
The shift reflects a desire for everyone – businesses and individuals alike – to have more certainty following the past few tumultuous years. Even among the employers you consider to be most desirable, this will likely be reflected in their seeking out candidates who themselves have consistently demonstrated not only strong academics but also well-honed relationship or “power” skills, rather than flashier technical super-stars (who often do not strongly demonstrate such abilities), who can help to execute the firm’s longer-term vision of greater revenue diversification.
To the point about diversification, Business Insider writes: “Goldman Sachs elevated 643 people to its 2021 class of managing directors, marking its largest class yet. The class was also Goldman’s most diverse yet. It included a 30-year-old black belt, an English major who’s opened up about experiencing ‘imposter syndrome’ at work, and former NFL player Justin Tuck.” (underlining theirs).
We hope these insights help you to truly see your diversity as an asset! (no pun intended)