November 17, 2021
Markets

Goldman Sachs mints billions through business it is looking to shrink

US banks updates

Goldman Sachs raked in record revenue from asset management in the last quarter thanks to a business that invests the Wall Street bank’s own capital. But rather than expand it, Goldman is seeking to make the business smaller. 

The US bank has said it hoped to shrink its “equity investments” portfolio by almost 20 per cent, turning instead to fees from clients such as pension funds and wealthy people to bring in more asset management revenue.

Goldman’s strategy is intended to please regulators and investors. Both camps view the bank’s equity investments as risky and unpredictable, which means Goldman has to hold more capital against its assets and struggles to win over investors seeking steady returns.

“The reality is the vast majority of revenues for this quarter [in…

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