Goldman Sachs has a plan to combine five investing teams into a single alternatives unit. This plan has been doubted internally and has led to interesting drama within the firm.
Questions:
- Who is Goldman’s CEO who announced this plan?
- Why is this move important to outside investors?
- Why is the debate centering around Goldman’s two most profitable units?
- What are these units?
- Explain the sentence in the article: ” The CEO wants to take advantage of the growth in alternatives, but to do so means moving away from the limitations of Goldman’s balance sheet.”
Source:
Campbell, R. (2019). Goldman Sachs execs are jockeying for power in the firm’s big new private investing unit — and the stakes couldn’t be higher. Business Insider, July 15 (Retrievable online at https://www.businessinsider.com/theres-drama-with-goldman-sachs-private-investing-unit-plan-2019-7)