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Main article: Goldman Sachs Bank
History
2023
Complete withdrawal from the capital of the owner of Cian.ru
The structures of the American Goldman Sachs Group in February 2023 reported a decrease to zero in the share in Cian PLC, which owns the rental and real estate trading service Cian.ru. Previously, their share reached 14.11%.
Cut share in HeadHunter to 5.9%
Goldman Sachs began to share Russian business with management. Goldman Sachs' share in HeadHunter in January 2023 decreased to 5.9%, while the company could also withdraw from other Russian assets. Their buyer, according to RBC sources, was Russian top managers of an American bank.
Bank governor David Solomon slashed his salary by 30% to $25 million
Goldman Sachs chief David Solomon slashed his salary by 30% amid falling stocks and profits. Now it is $25 million a year.
Laying off several thousand more employees
On January 9, 2023, it became known about new mass layoffs at Goldman Sachs Group. The reasons are the difficult macroeconomic situation and the ongoing crisis in the United States.
According to Bloomberg, approximately 3,200 employees fell under the reduction. More than a third of layoffs, according to reports, will fall on the main trading and banking divisions of Goldman Sachs. Hundreds of jobs will also be axed in the consumer business sector, which includes online bank Marcus. According to one source, the scale of the cuts will be the largest since the 2008 financial crisis. At the end of the third quarter of 2022, the company employed approximately 49,100 people; and the staff was significantly increased during the COVID-19 coronavirus pandemic.
Wall Street banks have faced a major slowdown in corporate transaction activity due to volatility in global financial markets. The job cuts at Goldman Sachs structures are noted to be implemented shortly before the traditional annual premium payout, which takes place in late January. In 2023, Goldman Sachs, according to Reuters, will reduce the size of bonuses by about 40%.
Major banks, including Morgan Stanley and Citigroup, have cut labor resources as the Wall Street deal-making boom has faded due to high interest rates, tensions between the United States and China, geopolitical conditions and high inflation. According to Dealogic, in 2022, commissions for investment banking services on a global scale amounted to about $77 billion. For comparison: in 2021, this figure was $132.3 billion.[1][2]
2022
4,000 Employee Layoff Plan
Goldman Sachs Bank will lay off 4,000 people, Bloomberg reported on December 16, 2022.
Plan to merge the trading and investment banking business into one division
In October 2022, it became known that Goldman Sachs is planning a large-scale reorganization. The US bank will merge its trading and investment banking business into one division, reducing it from four to three departments.
Staff cuts amid the start of the crisis
Investment bank Goldman Sachs plans to carry out a series of layoffs in the near future, which threatens to lose work for hundreds of employees, The Financial Times reported, citing sources. The layoffs are associated with a decrease in the number of transactions in the financial market.
Investbank intends to resume work on finding ineffective employees, which was stopped during the coronavirus pandemic: then bankers struggled to cope with the load and there was no talk of no work for them. "Selection of inefficient employees" means that 1-5% of employees of the entire company will lose their jobs.
Purchase of Norgine Pharmaceutical Company
On May 26, 2022, it became known that the Goldman Sachs Group investment division of Goldman Sachs Asset Management agreed to acquire a controlling stake in the pharmaceutical company Norgine BV from its founders. Read more here.
2021
Buying fintech company GreenSky
In mid-September 2021, Goldman Sachs bought. fintech company GreenSky The deal is estimated at $2.24 billion. More. here
Purchase of Dutch investment management group NN Investment Partners
On August 19, 2021, Goldman Sachs Bank announced the purchase of the company NNIP for 1.6 billion euros. As the agency notes, the Bloomberg deal has become part of a strategy aimed at making the bank's revenue stream less dependent on the revenues of global markets and consulting on transactions. The purchase will be the biggest acquisition of the US firm by Goldman Sachs bank since David Solomon became chief executive in 2018. More. here
Investing in online learning platform GetCourse
On July 22, 2021, the Winter Capital Partners fund, whose key investor is billionaire Vladimir Potanin, announced its investment in the online educational platform GetCourse. According to the results of the funding round, which was also attended by Baring Vostok and Goldman Sachs, the startup raised a total of $50 million. Read more here.
Launch of the company in conjunction with Nasdaq to trade shares of companies prior to their IPO
On July 21, 2021, it became known that the Nasdaq exchange entered into an agreement with major American banks, including Goldman Sachs and Morgan Stanley, to develop its platform allowing people to trade shares in private companies that enjoy great interest from investors seeking to make high returns on investments. Read more here.
Purchase of biopharmaceutical company Parexel
In early July 2021, it became known that EQT and Goldman Sachs Asset Management (the investment division of Goldman Sachs Group) are buying the clinical research company Parexel. The transaction amount is $8.5 billion. Read more here.
Complaints from young analysts about difficult working conditions
A group of Goldman Sachs investment analysts , who have been with the bank for less than a year, made a presentation to management in March 2021 , complaining about the recycling and health problems it entails. According to a survey of 13 specialists, they work on average more than 95 hours a week, that is , almost 14 hours every day without days off. Young analysts indicated that they sleep an average of five hours a day and do not lie down until 3:00 in the morning.
According to experts, overtime work leads to problems with physical and psychological health. Three-quarters of respondents admitted they felt like they were "victims of abuse at work." About the same number were forced to seek psychological help. All survey participants reported a deterioration in relations with family and friends. Everyone reported that they faced unrealistic deadlines for completing tasks, almost 85% suffered from excessive control and micromanagement.
On average, workers are only 2 points out of 10 satisfied with Goldman Sachs. If working conditions do not change in the next six months, the majority of respondents plan to change jobs.
"I can't sleep anymore, because the level of anxiety breaks through the roof," a comment from one of the respondents is given in the presentation. Another says that the prospect of being unemployed scares him less than the damage to the body from such a rhythm of life. "There was a period where I didn't eat, wash or do anything other than work from the morning until late at night," another comment read. The fourth states that sometimes work took 110-120 hours a week, which left four hours a day for other matters and sleep: "This is beyond" hard work, "it is inhuman."
2020
Purchase of information security developer White Ops
In late December 2020, Goldman Sachs Group partnered with venture capital firms ClearSky Security Fund and NightDragon to acquire cybersecurity startup White Ops. The acquisition price was not disclosed. Read more here.
Investing in meditation app developer Calm
In early December 2020, the developer of the meditation, sleep and relaxation application Calm attracted new investments and was valued at $2 billion. The main investors were Goldman Sachs Group, Lightspeed Venture Partners, TPG and Insight Partners. Read more here.
Start using drones to show customers purchased objects
At the end of November 2020, Goldman Sachs began to use drones to show customers purchased objects and conclude deals worth billions of dollars during a pandemic. The move to remote work has forced investment bankers to conduct virtual tours of potential acquisition sites for their clients, and now more than 95% of Goldman's deals are held without face-to-face meetings.
The coronavirus pandemic has disrupted all plans and traditional ways to conduct business transactions. Goldman Sachs therefore decided to use commercial-grade flying drones to control all of its acquisitions, from railroads to chemical plants, delivery ports, warehouses and other retail outlets.
 | We sell asset-based businesses around the world using drones to visit facilities and fly, "explained Stephan Feldgoise. - This allows buyers to verify the quality of the purchased items. |  |
More than 95% of Goldman's hundreds of deals are already held without face-to-face meetings, he said. According to Dealogic, in 2020 Goldman advised clients on 333 transactions worth about $815 billion. The company is likely to continue using drones after the pandemic, as they could "forever change the picture of the M&A market."
The unexpected transition to remote work in 2020 forced Wall Street bankers to also look for new ways to cope with the financial consequences of COVID-19. JPMorgan and other investment banks have also started using drone technology, which they found highly useful, CNBC reported. In addition, they found that the inaccessibility of airports and restaurants improves the productivity of employees who can now easily organize teleconferences with Zoom, BlueJeans, Cisco and Microsoft Teams.[3]
A fine of $350 million for money laundering in a bank
At the end of October 2020, the US Securities Commission fined Goldman Sachs $350 million for serious lapses in the management supervision and anti-money laundering system. The commission found out that money laundering was carried out in the bank, which contributed to the misappropriation of $2.6 billion.
It turned out that in 2012-13 Goldman Sachs International organized and conducted illegal stock offerings, and the income received from transactions was distributed between Goldman Sachs organizations in different jurisdictions. Goldman Sachs Asia did not use adequate controls and detection of irregularities in its day-to-day operations, leading to serious consequences, analysts said. The Commission reminded companies that this kind of fraud should be suppressed by introducing reliable internal control mechanisms.
Illegal bond transactions for Goldman Sachs were conducted by company employee Tim Leissner, managing director of the investment banking division. In August 2018, Leissner pleaded guilty to criminal charges brought against him by the U.S. Department of Justice for conspiracy to launder money and violating the Foreign Corrupt Practices Act. Leissner admitted he conspired with a Malaysian financier to pay bribes and kickbacks to Malaysian and Abu Dhabi officials.
The investigation found that Leissner was given free rein in the bond offering. The lack of internal control mechanisms allowed Leissner to hide information from management and provide deliberately false reports. The Commission believes that there were enough suspicious documents at the disposal of the inspecting and controlling authorities that raised serious questions about money laundering and bribery. However, Goldman Sachs' regional committees, which have been reviewing the bond offering, have not seen many discrepancies.[4]
Investing in Infinidat
On June 11, 2020, it became known that Infinidat, a provider of multi-petabyte storage solutions, announced that it had received an additional round of investments from existing investors - TPG Growth, Goldman Sachs, Claridge, Ion Investors and Infinidat founder Moshe Yanai. Read more here.
2019: Investing in Acronis
On September 18, 2019, Acronis announced it had raised $147 million from a group of investors. The investment bank Goldman Sachs invested the most in the company, but how much is not specified. Read more here.
Notes
- ↑ [1] Goldman to Cut About 3,200 Jobs This Week After Cost Review Goldman Sachs readies biggest layoffs since the financial crisis
- ↑ [2]
- ↑ Goldman Sachs has been employing drones to get a close peek at potential bids before sealing billion-dollar deals during the pandemic
- ↑ SFC reprimands and fines Goldman Sachs (Asia) L.L.C. US$350 million for serious regulatory failures over 1Malaysia Development Berhad’s bond offerings
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