Goldman Sachs

Goldman Sachs is an American multinational investment bank and financial-services company founded in New York in 1869 by Marcus Goldman. It grew from a small commercial-paper business into one of the world’s most prominent financial institutions, with activities spanning investment banking, securities, market making, asset management, wealth management, consumer finance, and banking. The company is headquartered at 200 West Street in Lower Manhattan and operates through offices in major financial centers around the world. The firm’s investment-banking business advises companies, governments, and other institutions on mergers and acquisitions, restructurings, divestitures, equity offerings, debt issuance, and other strategic transactions. Its Global Banking & Markets activities include underwriting, sales and trading, prime brokerage, securities financing, clearing, custody, and the structuring of financial products. Goldman Sachs also manages public and private-market investments for institutions, financial advisers, and individuals through Goldman Sachs Asset Management. Its wealth-management operations provide investment management, financial planning, lending, and related services to high-net-worth and ultra-high-net-worth clients. Goldman Sachs became particularly influential through its underwriting and advisory work. Early transactions included public offerings for Sears, Roebuck and Company, General Cigar, F. W. Woolworth, and other industrial and retail businesses. During the twentieth century, the firm expanded its research, municipal-finance, fixed-income, commodities, risk-arbitrage, and international capabilities. The 1981 acquisition of J. Aron & Company strengthened its commodities and trading franchise, while the creation of Goldman Sachs Asset Management in 1986 broadened the company beyond traditional investment banking. For most of its history Goldman Sachs was a private partnership. It converted into a public company in 1999, listing on the New York Stock Exchange under the ticker GS. The firm became a bank holding company in September 2008 during the global financial crisis, enabling it to operate with a regulated banking subsidiary and access to the Federal Reserve system. Goldman Sachs Bank USA later developed direct-banking and consumer-finance offerings, including Marcus by Goldman Sachs and lending-related businesses. The company has also expanded through acquisitions and partnerships. Examples include Spear, Leeds & Kellogg, Ayco, United Capital Financial Partners, GreenSky, NN Investment Partners, and NextCapital. In consumer finance, it partnered with Apple to launch Apple Card in the United States in 2019, although the reference material states that the program is expected to transition to JPMorgan Chase in 2028. Goldman Sachs remains a systemically important financial institution and a major participant in global capital markets. Its scale and influence are balanced by substantial exposure to market cycles, credit conditions, regulation, litigation, and public scrutiny.

Goldman Sachs began in 1869 when Marcus Goldman established a small New York commercial-paper business. Samuel Sachs, Goldman’s son-in-law, joined in 1882, followed by Henry Goldman and Ludwig Dreyfuss in 1885; the firm then adopted the Goldman Sachs name. Its early specialization was arranging short-term financing for businesses, and it joined the New York Stock Exchange in 1896. The firm opened domestic offices during the early twentieth century and entered public-company underwriting in 1906 with the Sears, Roebuck and Company offering. It subsequently handled offerings for companies including General Cigar, F. W. Woolworth, and Continental Can, while promoting price-to-earnings analysis as a way of valuing businesses with comparatively few tangible assets. The firm experienced a severe reputational and financial setback after the collapse of Goldman Sachs Trading Corporation during the 1929 stock-market crash. During the Great Depression, Waddill Catchings was removed and Sidney Weinberg became senior partner. Weinberg redirected the business toward investment banking, research, municipal bonds, and corporate finance. His era included advisory and underwriting work for Ford and Sears. Gus Levy later rebuilt the firm’s securities-trading activities and promoted block trading and a long-term reinvestment philosophy. The 1970 Penn Central bankruptcy, involving commercial paper distributed through Goldman Sachs, generated litigation and regulatory pressure and contributed to broader changes in commercial-paper credit assessment. Goldman Sachs established its first international office in London in 1970 and added fixed-income and private-wealth capabilities in the following years. In 1974 it used an early form of the “white knight” defense while advising Electric Storage Battery against a hostile bid. John L. Weinberg and John C. Whitehead became co-senior partners in 1976 and formalized a set of business principles that emphasized client service, integrity, teamwork, and long-term stewardship. The 1981 purchase of J. Aron & Company transformed the firm’s commodities and trading operations and helped create the Fixed Income, Currencies and Commodities franchise. Goldman Sachs expanded internationally, moved to 85 Broad Street, advised on privatizations, underwrote the Rockefeller Center REIT offering, and participated in the Microsoft IPO. In 1986 it formed Goldman Sachs Asset Management. The firm introduced electronic distribution of research and paperless NYSE trading, while Robert Rubin and Stephen Friedman emphasized globalization and the growth of mergers and acquisitions. After launching the Goldman Sachs Commodity Index and opening an office in Beijing in 1994, the partnership began its transition to public ownership. Goldman Sachs completed its initial public offering in May 1999, ending more than a century as a private partnership. It then acquired trading and asset-management businesses, including Spear, Leeds & Kellogg and other specialist firms. The global financial crisis marked another decisive turning point. In 2008 Goldman Sachs became a bank holding company, received capital support through TARP, and obtained a strategic investment from Berkshire Hathaway. It repaid the Treasury investment in 2009. The firm opened its current headquarters at 200 West Street in 2009. During the following decade it expanded direct banking, consumer lending, financial planning, asset management, and digital-finance activities. Marcus by Goldman Sachs launched personal loans in 2016, while the Apple Card partnership began in 2019. Acquisitions such as United Capital, GreenSky, NN Investment Partners, and NextCapital broadened wealth management, consumer finance, European asset management, and retirement technology. David Solomon became chairman and chief executive officer in 2018. The reference material identifies a planned transition of the Apple Card program to JPMorgan Chase in 2028.

1. 2019Apple Card partnership

   Goldman Sachs partnered with Apple on the Apple Card credit-card product.

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2. 2016Marcus personal loans launched

   Goldman Sachs Bank USA began offering unsecured personal loans under Marcus.

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3. 2008Bank holding company conversion

   The Federal Reserve approved Goldman Sachs’s conversion during the financial crisis.

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4. 1999Initial public offering

   Goldman Sachs became a publicly traded company.

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5. 1986Asset-management business formed

   Goldman Sachs Asset Management was established.

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6. 1981J. Aron acquisition

   The acquisition strengthened commodities, currencies, and fixed-income trading.

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7. 1970First international office

   The firm opened its first international office in London.

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8. 1906Entry into IPO underwriting

   Goldman Sachs helped take Sears, Roebuck and Company public.

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9. 1896NYSE membership

   The firm joined the New York Stock Exchange.

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10. 1885Goldman Sachs name adopted

    Henry Goldman and Ludwig Dreyfuss joined, and the firm adopted its enduring name.

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11. 1869Firm founded in New York

    Marcus Goldman established the business as a commercial-paper operation.

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A relationship-driven, globally integrated investment bank combining corporate advisory, capital-markets execution, trading, asset management, and wealth-management capabilities.

• Investment bankingAdvisory and underwriting

  Goldman Sachs advises corporations, governments, and institutions on mergers and acquisitions, restructurings, strategic transactions, and capital raising. It underwrites initial public offerings, follow-on equity offerings, investment-grade and high-yield debt, and other securities.

• Global Banking & MarketsSecurities and markets

  This business provides sales and trading, market making, financing, prime brokerage, clearing, custody, and structured products across equities, fixed income, currencies, commodities, and other markets.

• Goldman Sachs Asset ManagementAsset management1986

  Formed in 1986, the asset-management business serves institutions, advisers, and individuals through public and private-market investment strategies, including alternatives and retirement-related solutions.

• Wealth managementWealth management

  Goldman Sachs provides investment management, financial planning, lending, banking, and advisory services for private clients and families, including high-net-worth and ultra-high-net-worth customers.

• Marcus by Goldman SachsDigital banking and consumer finance2016

  Marcus was the consumer-facing brand used for Goldman Sachs online banking and unsecured personal loans. It formed part of the firm’s effort to apply its banking infrastructure to individual customers.

• Apple CardCredit card partnership2019

  Apple Card was launched in the United States through a partnership between Apple and Goldman Sachs. The reference material states that the program is expected to move to JPMorgan Chase in 2028.

• 2019Launch Apple Card partnershipProduct launch

  Apple sought a banking partner for a consumer credit card integrated with its devices and services.

  What changed. Goldman Sachs became the issuing bank for Apple Card in the United States.

  Aftermath. The partnership gave Goldman Sachs a prominent consumer-finance product, while the reference material states that the program is planned to transition to JPMorgan Chase in 2028.

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• 2008Become a bank holding companyStrategy

  The global financial crisis created extraordinary liquidity and confidence pressures for independent investment banks.

  What changed. Goldman Sachs obtained approval to operate as a traditional bank holding company.

  Aftermath. The firm gained a regulated banking structure and access to Federal Reserve facilities while expanding its deposit-taking and consumer-banking capabilities.

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• 1999Convert from partnership to public companyStrategy

  The partnership structure had supported reinvestment and employee ownership, but the firm needed broader capital and a public equity currency for expansion.

  What changed. Goldman Sachs completed an initial public offering in May 1999.

  Aftermath. The company became publicly traded while retaining substantial employee and former-partner ownership at the time of listing.

  IPO share price. $53 per share (May 1999)

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• 1981Acquire J. Aron & CompanyM&A

  Goldman Sachs sought to deepen its commodities and securities-trading capabilities.

  What changed. It acquired J. Aron and combined the business with fixed-income operations.

  Aftermath. The transaction helped form the firm’s Fixed Income, Currencies and Commodities franchise and brought Lloyd Blankfein into Goldman Sachs.

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• 20201MDB bribery caseControversy

  Goldman Sachs reached settlements with authorities concerning its role in bond offerings for Malaysia’s 1MDB development fund and related bribery allegations. The case resulted in substantial penalties and scrutiny of the firm’s controls and conduct.

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• 2012Public criticism over client-interest cultureControversy

  A former executive’s public opinion article criticized Goldman Sachs’s internal culture and alleged that employees were encouraged to prioritize firm revenue over client interests. The article generated extensive public and media debate, although the allegations were contested.

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• 2010Abacus 2007-AC1 regulatory caseControversy

  U.S. regulators alleged that Goldman Sachs had inadequately disclosed the role of a hedge fund involved in selecting assets for the Abacus 2007-AC1 synthetic collateralized debt obligation. Goldman Sachs reached a settlement with the Securities and Exchange Commission; the episode became one of the most prominent post-crisis controversies involving the firm.

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• 2026Goldman Sachs agrees to transition Apple Card program to JPMorgan Chase

  The reference material states that Goldman Sachs agreed to transition the Apple Card program to JPMorgan Chase in 2028.

  Other
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• 2021Goldman Sachs agrees to acquire NN Investment Partners

  Goldman Sachs announced an agreement to acquire NN Investment Partners, expanding its European asset-management business.

  M&A
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• 2019Goldman Sachs and Apple announce Apple Card partnership

  Apple selected Goldman Sachs as its banking partner for Apple Card, marking Goldman’s major entry into consumer credit-card services.

  Product launchM&A
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• 2011Goldman Sachs closes Global Alpha hedge fund

  The firm announced the closure of Global Alpha after a substantial decline in assets and losses following the fund’s earlier quantitative-trading success.

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• 2009Goldman Sachs repays Troubled Asset Relief Program investment

  The firm repaid the U.S. Treasury’s preferred-stock investment under TARP, together with dividends and warrant-related payments described in the reference material.

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• 2008Goldman Sachs becomes a bank holding company during the financial crisis

  Goldman Sachs received approval to convert into a traditional bank holding company as the financial crisis reshaped the United States investment-banking industry.

  Regulation
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1. Goldman Sachs
2. Goldman Sachs official website