Goldman Sachs to Reorganize, See Profits Fall
Goldman Sachs, one of the largest investment banks on Wall Street, is going to reorganize in less than three years.
For example, the group will merge its investment banking and trading activities into one division, the bank announced. The US investment bank also announced that its third-quarter profit fell sharply.
Net profit came in at nearly $3 billion compared to $5.3 billion in the same period a year earlier. The results were mainly under pressure because fewer deals were closed in the past period. The investment branch’s turnover fell by 57 percent. The decline was greater than expected. Interest income did rise in the third quarter because borrowing money has become more expensive.
It is not yet known whether jobs will disappear due to the restructuring. However, the investment bank was rumoured to cut hundreds of jobs last month. The bank has been struggling with challenging market conditions for some time, especially in the field of advising on mergers and acquisitions and IPOs.
Goldman was the last major US bank to release its quarterly results.