Founding and establishmentGoldman Sachs was founded in New York City in 1869 by . In 1882, Goldman's son-in-law joined the firm. In 1885, Goldman took his son Henry and his son-in-law Ludwig Dreyfuss into the business and the firm adopted its present name, Goldman Sachs & Co. The company pioneered the use of for entrepreneurs and joined the (NYSE) in 1896. By 1898, the firm's capital stood at $1.6 million. Goldman entered the market in 1906 when it took public. The deal was facilitated by Henry Goldman's personal friendship with , an owner of Sears. Other IPOs followed, including F. W. Woolworth and Continental Can. In 1912, Henry S. Bowers became the first non-member of the founding family to become a partner of the company and share in its profits. In 1917, under growing pressure from the other partners in the firm due to his pro-German stance, Henry Goldman resigned. The Sachs family gained full control of the firm until Waddill Catchings joined the company in 1918. By 1928, Catchings was the Goldman partner with the single largest stake in the firm. On December 4, 1928, the firm launched the Goldman Sachs Trading Corp, a . The fund failed during the , amid accusations that Goldman had engaged in share price manipulation and .
Mid-20th centuryIn 1930, the firm ousted Catchings, and assumed the role of senior partner and shifted Goldman's focus away from trading and toward . Weinberg's actions helped to restore some of Goldman's tarnished reputation. Under Weinberg's leadership, Goldman was the lead advisor on the 's IPO in 1956, a major coup on Wall Street at the time. Under Weinberg's reign, the firm started an investment research division and a department, and it became an early innovator in . In the 1950s, joined the firm as a securities trader, where two powers fought for supremacy, one from investment banking and one from securities trading. Levy was a pioneer in block trading and the firm established this trend under his guidance. Due to Weinberg's heavy influence, the firm formed an investment banking division in 1956 in an attempt to shift focus off Weinberg. In 1969, Levy took over Weinberg's role as Senior Partner and built Goldman's trading franchise once again. Levy is credited with Goldman's famous philosophy of being "long-term greedy," which implied that as long as money is made over the long term, short-term losses are bearable. At the same time, partners reinvested nearly all of their earnings in the firm. Weinberg remained a senior partner of the firm and died in July of that year. Another financial crisis for the firm occurred in 1970, when the went bankrupt with over $80 million in outstanding, most of it issued through Goldman Sachs. The bankruptcy was large, and the resulting lawsuits, notably by the SEC, threatened the partnership capital, life, and reputation of the firm. It was this bankruptcy that resulted in s for every issuer of commercial paper today by several credit rating services. Under the direction of Senior Partner Stanley R. Miller, the firm opened its first international office in London in 1970 and created a private wealth division along with a division in 1972. It pioneered the " white knight" strategy in 1974 during its attempts to defend Electric Storage Battery against a bid from International Nickel and Goldman's rival, . John L. Weinberg (the son of Sidney Weinberg), and John C. Whitehead assumed roles of co-senior partners in 1976, once again emphasizing the co-leadership at the firm. One of their initiatives was the establishment of 14 business principles that the firm still claims to apply.
Late 20th centuryOn November 16, 1981, the firm acquired J. Aron & Company, a firm which merged with the Fixed Income division to become known as Fixed Income, Currencies, and Commodities. J. Aron was involved in the coffee and gold markets, and the former CEO of Goldman, , joined the firm as a result of this merger. In 1985 it underwrote the public offering of the that owned , then the largest offering in history. In accordance with the beginning of the , the firm also became involved in facilitating the global privatization movement by advising companies that were spinning off from their parent governments. In 1986, the firm formed Goldman Sachs Asset Management, which manages the majority of its mutual funds and s today. In the same year, the firm also underwrote the IPO of , advised on its acquisition of , joined the and s, and became the first United States bank to rank in the top 10 of in the United Kingdom. During the 1980s the firm became the first bank to distribute its investment research electronically and created the first public offering of original issue deep-discount . and Stephen Friedman assumed the co-senior partnership in 1990 and pledged to focus on globalization of the firm to strengthen the merger & acquisition and trading business lines. During their tenure as co-senior partners, the firm introduced paperless trading to the New York Stock Exchange and lead-managed the first-ever global debt offering by a U.S. corporation. In 1994, it also launched the Goldman Sachs Commodity Index (GSCI) and opened its first office in China in . That same year, became CEO, following the departure of Rubin and Friedman. Rubin had drawn criticism in Congress for using a Treasury Department account under his personal control to distribute $20 billion to bail out Mexican bonds, of which Goldman was a key distributor. On November 22, 1994, the Mexican Bolsa stock market admitted Goldman Sachs and one other firm to operate on that market. The 1994 economic crisis in Mexico threatened to wipe out the value of Mexico's bonds held by Goldman Sachs. In 1994, Goldman financed in a deal that allowed it to take an ownership interest in 1996, and sold to in 2000. In April 1996, Goldman was the lead underwriter of the IPO. In 1998, it was the co-lead manager of the ¥2 trillion (yen) IPO. In 1999, Goldman acquired for $531 million. After decades of debate among the partners, the company became a via an in May 1999. Goldman sold 12.6% of the company to the public, and, after the IPO, 48.3% of the company was held by 221 former partners, 21.2% of the company was held by non-partner employees, and the remaining 17.9% was held by retired Goldman partners and two long-time investors, Sumitomo Bank Ltd. and Assn, the investing arm of Kamehameha Schools. The shares were priced at $53 each. After the IPO, became Chairman and Chief Executive Officer, succeeding Jon Corzine.
21st centuryIn September 2000, Goldman Sachs purchased Spear, Leeds, & Kellogg, one of the largest specialist firms on the New York Stock Exchange, for $6.3 billion. In January 2000, Goldman, along with Lehman Brothers, was the lead manager for the first internet bond offering for the . In March 2003, the firm took a 45% stake in a joint venture with JBWere, the Australian investment bank. In April 2003, Goldman acquired The Ayco Company L.P., a fee-based financial counseling service. In December 2005, four years after its report on the emerging "BRIC" economies (Brazil, Russia, India, and China), Goldman Sachs named its "Jim O'Neill, Baron O'Neill of Gatley#Next Eleven, Next Eleven" list of countries, using macroeconomic stability, political maturity, openness of trade and investment policies and quality of education as criteria: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, Turkey, South Korea and Vietnam. In May 2006, Paulson left the firm to serve as United States Secretary of the Treasury, and was promoted to Chairman and Chief Executive Officer. In January 2007, Goldman, along with CanWest Global Communications, acquired Alliance Atlantis, the company with the broadcast rights to the CSI (franchise), CSI franchise. On September 10, 2018, Goldman Sachs acquired Boyd Corporation for a Leveraged Buyout of $3 billion. On May 16, 2019, Goldman Sachs acquired United Capital Financial Advisers, LLC for $750 million cash. Goldman Sachs will, among others, rely on CoreCard, a card management software owned by the Fintech company Intelligent Systems Corporation.
Subprime mortgage crisis: 2007–2008During the 2007 , Goldman profited from the collapse in subprime mortgage bonds in summer 2007 by short (finance), short-selling subprime Mortgage-backed security, mortgage-backed securities. Two Goldman traders, Michael Swenson and Josh Birnbaum, are credited with being responsible for the firm's large profits during the crisis. The pair, members of Goldman's structured products group in , made a profit of $4 billion by "betting" on a collapse in the subprime market and shorting mortgage-related securities. By summer 2007, they persuaded colleagues to see their point of view and convinced skeptical risk management executives. The firm initially avoided large subprime write-downs and achieved a net profit due to significant losses on non-prime securitization, securitized loans being offset by gains on short mortgage positions. The firm's viability was later called into question as the crisis intensified in September 2008. On October 15, 2007, as the crisis had begun to unravel, Allan Sloan, a senior editor for ''Fortune (magazine), Fortune'' magazine, wrote:
So let's reduce this macro story to human scale. Meet GSAMP Trust 2006-S3, a $494 million drop in the junk-mortgage bucket, part of the more than half-a-trillion dollars of mortgage-backed securities issued last year. We found this issue by asking mortgage mavens to pick the worst deal they knew of that had been floated by a top-tier firm - and this one's pretty bad. It was sold by Goldman Sachs - GSAMP originally stood for Goldman Sachs Alternative Mortgage Products but now has become a name itself, like AT&T Inc., AT&T and 3M. This issue, which is backed by ultra-risky second-mortgage loans, contains all the elements that facilitated the housing bubble and bust. It's got speculators searching for quick gains in hot housing markets; it's got loans that seem to have been made with little or no serious analysis by lenders; and finally, it's got Wall Street, which churned out mortgage "product" because buyers wanted it. As they say on the Street, "When the ducks quack, feed them."On September 21, 2008, Goldman Sachs and Morgan Stanley, the last two major investment banks in the United States, both confirmed that they would become traditional bank holding company, bank holding companies. The Federal Reserve's approval of their bid to become banks ended the business model of an independent securities firm, 75 years after Congress separated them from deposit-taking lenders, and capped weeks of chaos that sent Lehman Brothers into bankruptcy and led to the rushed sale of to Bank of America Corp. On September 23, 2008, Berkshire Hathaway agreed to purchase $5 billion in Goldman's preferred stock, and also received Warrant (finance), warrants to buy another $5 billion in Goldman's common stock within five years. The company also raised $5 billion via a public offering of shares at $123 per share. Goldman also received a $10 billion preferred stock investment from the U.S. Treasury in October 2008, as part of the (TARP). Andrew Cuomo, then New York Attorney General, questioned Goldman's decision to pay 953 employees bonuses of at least $1 million each after it received TARP funds in 2008. In that same period, however, CEO Lloyd Blankfein and six other senior executives opted to forgo bonuses, stating they believed it was the right thing to do, in light of "the fact that we are part of an industry that's directly associated with the ongoing economic distress". Cuomo called the move "appropriate and prudent", and urged the executives of other banks to follow the firm's lead and refuse bonus payments. In June 2009, Goldman Sachs repaid the U.S. Treasury's TARP investment, with 23% interest (in the form of $318 million in preferred stock, preferred dividend payments and $1.418 billion in warrant redemptions). On March 18, 2011, Goldman Sachs received Federal Reserve approval to buy back Berkshire's preferred stock in Goldman. In December 2009, Goldman announced that its top 30 executives would be paid year-end bonuses in restricted stock that they cannot sell for five years, with clawback provisions. During the 2008 financial crisis, the Federal Reserve introduced a number of short-term credit and liquidity facilities to help stabilize markets. Some of the transactions under these facilities provided liquidity to institutions whose disorderly failure could have severely stressed an already fragile financial system. Goldman Sachs was one of the heaviest users of these loan facilities, taking out many loans between March 18, 2008, and April 22, 2009. The Primary Dealer Credit Facility (PDCF), the first Fed facility ever to provide overnight loans to investment banks, loaned Goldman Sachs a total of $589 billion against collateral such as corporate market instruments and Mortgage-backed security, mortgage-backed securities. The Term Securities Lending Facility (TSLF), which allows primary dealers to borrow liquid Treasury securities for one month in exchange for less liquid collateral, loaned Goldman Sachs a total of $193 billion. Goldman Sachs's borrowings totaled $782 billion in hundreds of revolving transactions over these months. The loans were fully repaid in accordance with the terms of the facilities. According to a 2009 BrandAsset Valuator survey taken of 17,000 people nationwide, the firm's reputation suffered in 2008 and 2009, and rival Morgan Stanley was respected more than Goldman Sachs, a reversal of the sentiment in 2006. Goldman refused to comment on the findings. In 2011, Goldman took full control of JBWere in a $1 billion buyout.
Global AlphaAccording to ''The Wall Street Journal'', in September 2011, Goldman Sachs, announced that it was shutting down its largest hedge fund—Global Alpha Fund LP—which had been housed under Goldman Sachs Asset Management (GSAM). Global Alpha, which was created in the mid-1990s with $10 million, was once "one of the biggest and best performing hedge funds in the world" with more than $12 billion assets under management (AUM) at its peak in 2007. Global Alpha, which used computer-driven models to invest, became known for high-frequency trading and furthered the career of Quantitative analysis (finance), quantitative analysts—'quants'—such as Cliff Asness and Mark Carhart, who were the quant fund's founding fathers and had developed the statistical models that drove the trading. ''The Wall Street Journal'' described Asness and Carhart as managers of Global Alpha, a "big, secretive hedge fund"—the "Cadillac of a fleet of alternative investments" that had made millions for Goldman Sachs by 2006. By mid-2008 the quant fund had declined to 2.5 billion, by June 2011, it was less than $1.7 billion, and by September 2011, after suffering losses that year, it had "about $1 billion AUM.
2013–2020In September 2013, Goldman Sachs Asset Management announced it had entered into an agreement with Deutsche Asset & Wealth Management to acquire its stable value business, with total assets under supervision of $21.6 billion . In April 2013, together with Deutsche Bank, Goldman led a $17 billion bond offering by Apple Inc., the largest corporate-bond deal in history and Apple's first since 1996. Goldman Sachs managed both of Apple's previous bond offerings in the 1990s. Goldman Sachs was the lead underwriter for Twitter's initial public offering in 2013. At the time, Goldman's position as lead underwriter for Twitter was considered "one of the biggest tech prizes around". Goldman earned approximately $22.8 million in fees from the Twitter IPO; however, the chief economist and strategist at ZT Wealth said, "Goldman being the first name on the S-1 has little to do with fees. This is about Goldman rebalancing itself as a serious leader and competing with Morgan Stanley's dominant position in technology." In 2013, Goldman underwrote the $2.913 billion Grand Parkway System Toll Revenue Bond offering for the Houston, Texas area, one of the fastest-growing areas in the United States. The bond will be repaid from toll revenue. In June 2013, Goldman Sachs purchased loan portfolio from Brisbane-based Suncorp Group, one of Australia's largest banks and insurance companies. The Australian dollar, A$1.6 billion face amount loan portfolio was purchased for A$960 million. In August 2015, Goldman Sachs agreed to acquire General Electric Co.'s GE Capital Bank on-line deposit platform. Terms of the transaction were not disclosed, but the purchase includes US$8-billion of on-line deposits and another US$8-billion of brokered certificates of deposit. The purchase allows Goldman Sachs to access a stable and inexpensive pool of sources of funding. In April 2016, Goldman Sachs launched a , GS Bank. In October 2016, Goldman Sachs Bank USA started offering no-fee Unsecured debt, personal loans under the brand Marcus by Goldman Sachs. In March 2016, Goldman Sachs agreed to acquire financial technology startup Whurley#Honest Dollar (2014-present), Honest Dollar, a digital retirement savings tool founded by American entrepreneur whurley, focused on helping small-business employees and self-employed workers obtain affordable retirement plans. Terms of the deal were not disclosed. In May 2017, Goldman Sachs purchased $2.8 billion of PDVSA 2022 bonds from the Central Bank of Venezuela during the 2017 Venezuelan protests. In April 2018, Goldman Sachs bought Clarity Money, a personal finance startup, to be added to its Marcus by Goldman Sachs roster. This acquisition is expected to add over 1 million customers to the Marcus business. In August 2019, Goldman Sachs joined Wells Fargo, Nvidia, NVIDIA and Nexus Venture Partners to invest in H2O.ai. Under the terms of the deal, Jade Mandel from Goldman Sachs will be joining the H2O.ai Board. In February 2020, Goldman Sachs, along with Aquiline and World Innovation Lab, raised $51 million to invest in Unqork, a New York-based software company, to accelerate global expansion and move into new industries beyond insurance and financial services. In June 2020, Goldman Sachs introduced a new corporate typeface, Goldman Sans, and made it freely available. After Internet users discovered that the terms of the license prohibited the disparagement of Goldman Sachs, the bank was much mocked and disparaged in its own font, until it eventually changed the license to the standard SIL Open Font License. In July 2020, Goldman Sachs agreed on a $3.9 billion settlement in Malaysia for criminal charges related to the 1MDB scandal. For charges brought for the same case in other countries, Goldman Sachs agreed in October of the same year to pay more than $2.9 billion, with over $2 billion going to fines imposed in the US.
Current operationsThe company includes 4 business units, as follows:
Investment BankingIn 2015, accounted for 21% of total company revenues. Investment banking includes financial advisory (mergers and acquisitions, investitures, corporate defense activities, restructuring, and spin-offs) and underwriting (capital raises, public offerings, and private placements of equity and debt instruments). Goldman Sachs is one of the leading M&A advisory firms, often topping the Thomson Financial league tables in sizes of transactions. The firm gained a reputation as a white knight in the mergers and acquisitions sector by advising clients on how to avoid unfriendly s. During the 1980s, Goldman Sachs was the only major investment bank with a strict policy against helping to initiate a hostile takeover, which increased the firm's reputation immensely among sitting management teams at the time.
Global MarketsIn 2017, Global Markets accounted for 37% of revenues. The segment is divided into four divisions and includes Fixed Income (the trading of interest rate and credit (finance), credit products, Mortgage-backed security, mortgage-backed securities, Insurance-Linked Securities (ILS), insurance-linked securities and structured and derivative products), Currency and Commodities (the trading of currencies and commodities), Equities (the trading of equities, equity derivatives, structured products, option (finance), options, and futures contracts), and Principal Investments (merchant banking investments and funds). This segment consists of the revenues and profit gained from the Bank's trading activities, both on behalf of its clients (known as flow trading) and for its own account (known as proprietary trading).
Asset ManagementIn 2015, asset management accounted for 18% of total company revenues. In August 2021, the bank announced that it had agreed to acquire NN Investment Partners from NN Group and merge it with GSAM to expand its international operations. NN Investment Partners, which has 335 billion in assets under management, was acquired for €1.7 billion. The Asset Management division provides investment advisory and financial planning services and offers investment products (primarily through separately managed accounts and commingled vehicles) across all major asset classes to a diverse group of institutions and individuals worldwide. The division provides clearing (finance), clearing, financing, custodian bank, custody, securities lending, and reporting services to institutional clients, including hedge funds, mutual funds, and pension funds. The division generates revenues primarily in the form of spreads, or management and transaction fees.
Consumer & Wealth ManagementConsumer & Wealth Management includes management and other fees, incentive fees, and results from deposit-taking activities related to the firm’s wealth management business. It also includes the results from providing loans through the firm’s private bank, providing unsecured loans and accepting deposits through the firm’s digital platform, Marcus by Goldman Sachs, and providing credit cards. Consumer & Wealth Management oversees Goldman Sachs Private Wealth, Ayco, and Goldman Sachs Personal Financial Management.
PhilanthropyAccording to its website, Goldman Sachs has committed in excess of $1.6 billion to philanthropic initiatives since 2008. Goldman Sachs reports its environmental and social performance in an annual report on Corporate social responsibility that follows the Global Reporting Initiative protocol. The company offers a donor advised fund (DAF) called Goldman Sachs Gives that donates to charitable organizations with an employee donation match of up to $20,000. A 2019 investigation by ''Sludge'' of DAFs and hate groups found that Goldman Sach's donor advised fund had not been used to fund any SPLC hate groups, but that the fund did not have any explicit policy preventing such donations.
Environmental policyIn 2019 the company pledged to give 750 billion dollars to green projects and to stop financing for oil exploration in the Arctic and for some projects related to coal.
Controversies and legal issuesGoldman has been accused of an assortment of misdeeds, including a general decline in ethical standards, working with dictatorial regimes, cozy relationships with the US federal government via a "Revolving door (politics), revolving door" of former employees, by some of its traders, and driving up prices of Commodity market, commodities through Futures exchange, futures speculation. Goldman has denied wrongdoing in these cases.
CEO-to-worker pay ratioIn 2018, a new Securities and Exchange Commission rule mandated under the 2010 Dodd-Frank financial reform required publicly traded companies to disclose how their CEOs are compensated in comparison with their employees by disclosing their “Pay Ratios,” which is the CEO's compensation divided by the median employee's compensation. According to SEC filings, The Goldman Sachs Group Inc. paid its CEO about $22 million in 2017. The median salary for a worker employed by The Goldman Sachs Group Inc. paid $135,165 in 2017, yielding a CEO-to-worker Pay Ratio of 163 to 1.
Role in the financial crisis of 2007-2008Goldman has been criticized in the aftermath of the , where some alleged that it misled its investors and profited from the collapse of the mortgage market. This situation brought investigations from the United States Congress, the United States Department of Justice, and a lawsuit from the U.S. Securities and Exchange Commission that resulted in Goldman paying a $550 million settlement. Goldman received $12.9 billion from AIG counterparty payments provided by the AIG bailout, $10 billion in Troubled Asset Relief Program, TARP money from the government, which it paid back to the government, and a record $11.4 billion set aside for employee bonuses in the first half of 2009. In 2011, a Senate panel released a report accusing Goldman Sachs of misleading clients and engaging in conflicts of interest. In a story in ''Rolling Stone'', Matt Taibbi characterized Goldman Sachs as a "great vampire squid" sucking money instead of blood, allegedly engineering "every major market manipulation since the Great Depression ... from tech stocks to high gas prices". In June 2009, after the firm repaid the TARP investment from the U.S. Treasury, Goldman made some of the largest bonus payments in its history due to its strong financial performance. Andrew Cuomo, then New York Attorney General, questioned Goldman's decision to pay 953 employees bonuses of at least $1 million each after it received TARP funds in 2008. That same period, however, CEO Lloyd Blankfein and 6 other senior executives opted to forgo bonuses, stating they believed it was the right thing to do, in light of "the fact that we are part of an industry that's directly associated with the ongoing economic distress". Goldman Sachs maintained that its net exposure to AIG was 'not material', and that the firm was protected by hedge (finance), hedges (in the form of CDSs with other counterparties) and $7.5 billion of collateral (finance), collateral. The firm stated the cost of these hedges to be over $100 million. According to Goldman, both the collateral and CDSs would have protected the bank from incurring an economic loss in the event of an AIG bankruptcy (however, because AIG was bailed out and not allowed to fail, these hedges did not pay out). CFO David Viniar stated that profits related to AIG in the first quarter of 2009 "rounded to zero", and profits in December were not significant. He went on to say that he was "mystified" by the interest the government and investors have shown in the bank's trading relationship with AIG. Some have said, incorrectly according to others, that Goldman Sachs received preferential treatment from the government by being the only Wall Street firm to have participated in the crucial September meetings at the New York Fed, which decided AIG's fate. Much of this has stemmed from an inaccurate but often quoted ''New York Times'' article. The article was later corrected to state that Blankfein, CEO of Goldman Sachs, was "''one of'' the Wall Street chief executives at the meeting". Bloomberg L.P., Bloomberg has also reported that representatives from other firms were indeed present at the September AIG meetings. Furthermore, Goldman Sachs CFO David Viniar stated that CEO Blankfein had never "met" with his predecessor and then-US Treasury Secretary Henry Paulson to discuss AIG; however, there were frequent phone calls between the two of them. Paulson was not present at the September meetings at the New York Fed. was hired by the Federal Reserve to advise on the AIG bailout.
Sale of Dragon Systems to Lernout & Hauspie despite accounting issuesIn 2000, Goldman Sachs advised Dragon NaturallySpeaking, Dragon Systems on its sale to Lernout & Hauspie of Belgium for $580 million in L&H stock. L&H later collapsed due to accounting fraud and its stock price declined significantly. Jim and Janet Baker, founders and together 50% owners of Dragon, filed a lawsuit against Goldman Sachs, alleging negligence, intentional and negligent misrepresentation, and breach of fiduciary duty since Goldman did not warn Dragon or the Bakers of the accounting problems of the acquirer, L&H. On January 23, 2013, a federal jury rejected the Bakers' claims and found Goldman Sachs not liable to the Bakers.
Stock price manipulationGoldman Sachs was charged for repeatedly issuing research reports with extremely inflated financial projections for Exodus Communications and Goldman Sachs was accused of giving Exodus its highest stock rating even though Goldman knew Exodus did not deserve such a rating. On July 15, 2003, Goldman Sachs, Lehman Brothers and were sued for artificially inflating the stock price of RSL Communications by issuing untrue or materially misleading statements in research analyst reports, and paid $3,380,000 for settlement. Goldman Sachs is accused of asking for kickback (bribery), kickback bribes from institutional clients who made large profits flipping stocks which Goldman had intentionally undervalued in s it was underwriting. Documents under seal in a decade-long lawsuit concerning eToys.com's (IPO) in 1999 but released accidentally to the ''New York Times'' show that IPOs managed by Goldman were underpriced and that Goldman asked clients able to profit from the prices to increase business with it. The clients willingly complied with these demands because they understood it was necessary in order to participate in further such undervalued IPOs. Companies going public and their initial consumer stockholders are both defrauded by this practice.
Use of offshore tax havensA 2016 report by Citizens for Tax Justice stated that "Goldman Sachs reports having 987 subsidiaries in offshore tax havens, 537 of which are in the Cayman Islands, despite not operating a single legitimate office in that country, according to its own website. The group officially holds $28.6 billion offshore." The report also noted several other major U.S. banks and companies use the same tax-avoidance tactics. In 2008, Goldman Sachs had an effective tax rate of only 1%, down from 34% the year before, and its tax liability decreased to $14 million in 2008, compared to $6 billion in 2007. Critics have argued that the reduction in Goldman Sachs's tax rate was achieved by shifting its earnings to subsidiaries in low or no-tax nations, such as the Cayman Islands.
Involvement in the European sovereign debt crisisGoldman is being criticized for its involvement in the 2010 European sovereign debt crisis. Goldman Sachs is reported to have systematically helped the Greek government mask the true facts concerning its national debt between the years 1998 and 2009. In September 2009, Goldman Sachs, among others, created a special credit default swap (CDS) index to cover the high risk of Greece's national debt. The interest-rates of Greek national bonds soared, leading the Greek economy very close to bankruptcy in 2010 and 2011. Ties between Goldman Sachs and European leadership positions were another source of controversy. Lucas Papademos, Greece's former prime minister, ran the Central Bank of Greece at the time of the controversial derivatives deals with Goldman Sachs that enabled Greece to hide the size of its debt. Petros Christodoulou, General Manager of the Greek Public Debt Management Agency (Greece), Public Debt Management Agency is a former employee of Goldman Sachs. , Italy's former prime minister and finance minister, who headed the new government that took over after Berlusconi's resignation, is an international adviser to Goldman Sachs. Otmar Issing, former board member of the Bundesbank and the Executive Board of the European Bank also advised Goldman Sachs. , head of the and since 2021 prime minister of Italy, is the former managing director of Goldman Sachs International. António Borges (economist), António Borges, Head of the European Department of the International Monetary Fund in 2010-2011 and responsible for most of enterprise privatizations in Portugal since 2011, is the former Vice Chairman of Goldman Sachs International. Carlos Moedas, a former Goldman Sachs employee, was the Secretary of State to the Prime Minister of Portugal and Director of ESAME, the agency created to monitor and control the implementation of the structural reforms agreed by the government of Portugal and the troika (triumvirate), troika composed of the European Commission, the European Central Bank and the International Monetary Fund. Peter Sutherland, former Attorney General of Ireland was a non-executive director of Goldman Sachs International.
Employees' viewsIn March 2012, Greg Smith, then-head of Goldman Sachs US equity derivatives sales business in Europe, the Middle East and Africa (EMEA), resigned his position via a critical letter printed as an op-ed in ''The New York Times''. In the letter, he attacked Goldman Sachs CEO and Chairman Lloyd Blankfein for losing touch with the company's culture, which he described as "the secret sauce that made this place great and allowed us to earn our clients' trust for 143 years". Smith said that advising clients "to do what I believe is right for them" was becoming increasingly unpopular. Instead there was a "toxic and destructive" environment in which "the interests of the client continue to be sidelined", senior management described clients as "Wikt:muppet, muppets" and colleagues callously talked about "ripping their clients off". In reply, Goldman Sachs said that "we will only be successful if our clients are successful", claiming "this fundamental truth lies at the heart of how we conduct ourselves", and that "we don't think [Smith's comments] reflect the way we run our business". Later that year, Smith published a book titled ''Why I left Goldman Sachs''. According to research by ''The New York Times'' after the op-ed was printed, almost all the claims made in Smith's incendiary Op-Ed about Goldman Sachs turned out to be "curiously short" on evidence. ''The New York Times'' never issued a retraction or admitted to any error in judgment in initially publishing Smith's op-ed. In 2014 a book by former Goldman portfolio manager Steven George Mandis was published entitled ''What Happened to Goldman Sachs: An Insider's Story of Organizational Drift and Its Unintended Consequences''. Mandis also has a PhD dissertation about Goldman at Columbia University. Mandis left in 2004 after working for the firm for 12 years. In an interview, Mandis said, "You read about Goldman Sachs, and it's either the bank is the best or the bank is the worst, this is not one of those books - things are never black or white." According to Mandis, there was an "organizational drift" in the company's evolution.
Gender bias lawsuitIn 2010, two former female employees filed a lawsuit against Goldman Sachs for gender discrimination. Cristina Chen-Oster and Shanna Orlich claimed that the firm fostered an "uncorrected culture of sexual harassment and assault" causing women to either be "sexualized or ignored". The suit cited both cultural and pay discrimination including frequent client trips to strip clubs, client golf outings that excluded female employees, and the fact that female vice presidents made 21% less than their male counterparts. In March 2018, the judge ruled that the female employees may pursue their claims as a group in a class-action lawsuit against Goldman on gender bias, but the class action excludes their claim on sexual harassment.
Advice to short California bonds underwritten by the firmOn November 11, 2008, the ''Los Angeles Times'' reported that Goldman Sachs had both earned $25 million from underwriting California bonds, and advised other clients to Short (finance), short those bonds. While some journalists criticized the contradictory actions, others pointed out that the opposite investment decisions undertaken by the underwriting side and the trading side of the bank were normal and in line with regulations regarding Chinese wall#Finance, Chinese walls, and in fact critics had demanded increased independence between underwriting and trading.
Personnel "revolving-door" with U.S. governmentDuring 2008 Goldman Sachs received criticism for an apparent Revolving door (politics), revolving door relationship, in which its employees and consultants have moved in and out of high-level U.S. Government positions, creating the potential for conflicts of interest. A large number of former Goldman Sachs employees in the US government has been jokingly referred to "Government Sachs". Former Treasury Secretary and former United States Senator and former are former CEOs of Goldman Sachs along with current governor Murphy. Additional controversy attended the selection of former Goldman Sachs lobbyist Mark A. Patterson as chief of staff to Treasury Secretary Timothy Geithner, despite President Barack Obama's campaign promise that he would limit the influence of lobbyists in his administration. In February 2011, the ''Washington Examiner'' reported that Goldman Sachs was "the company from which Obama raised the most money in 2008", and that its "CEO has visited the White House 10 times".
Insider trading casesIn 1986, Goldman Sachs investment banker David Brown pleaded guilty to charges of passing inside information on a takeover deal that eventually was provided to Ivan Boesky. In 1989, Robert M. Freeman, who was a senior Partner, who was the Head of Risk Arbitrage, and who was a protégé of , pleaded guilty to , for his own account and for the firm's account.
Rajat Gupta insider trading caseIn April 2010, Goldman director Rajat Gupta was named in an insider-trading case. It was said Gupta had "tipped off a hedge-fund billionaire", Raj Rajaratnam of Galleon Group, about the $5 billion Berkshire Hathaway investment in Goldman during the Financial crisis of 2007–2008#Impacts on financial institutions, financial crisis of 2007-2008. According to the report, Gupta had told Goldman the month before his involvement became public that he wouldn't seek re-election as a director.James, Frank
Abacus synthetic CDOs and SEC lawsuitUnlike many investors and investment bankers, Goldman Sachs anticipated the that developed in 2007-8. ''This article describes the intricate links between Goldman Sachs trader, Jonathan M. Egol, synthetic collateralized debt obligations, or C.D.O., ABACUS, and asset-backed securities index (ABX)'' Some of its traders became "bearish" on the housing boom beginning in 2004 and developed mortgage-related securities, originally intended to protect Goldman from investment losses in the housing market. In late 2006, Goldman management changed the firm's overall stance on the mortgage market from positive to negative. As the market began its downturn, Goldman "created even more of these securities", no longer just hedging or satisfying investor orders but, according to business journalist Gretchen Morgenson, "enabling it to pocket huge profits" from the mortgage defaults and that Goldman "used the C.D.O.'s to place unusually large negative bets that were not mainly for hedging purposes". Authors Bethany McLean and Joe Nocera stated that "the firm's later insistence that it was merely a 'market maker' in these transactions - implying that it had no stake in the economic performance of the securities it was selling to clients - became less true over time"- The investments were called synthetic CDOs because unlike regular collateralized debt obligations, the principal and interest they paid out came not from mortgages or other loans, but from premiums to pay for insurance against mortgage defaults - the insurance known as "credit default swaps". Goldman and some other hedge funds held a "short" position in the securities, paying the premiums, while the investors (insurance companies, pension funds, etc.) receiving the premiums were the "long" position. The longs were responsible for paying the insurance "claim" to Goldman and any other shorts if the mortgages or other loans defaulted. Through April 2007, Goldman issued over 20 CDOs in its "Abacus" series worth a total of $10.9 billion. All together Goldman packaged, sold, and shorted a total of 47 synthetic CDOs, with an aggregate face value of $66 billion between July 1, 2004, and May 31, 2007. But while Goldman was praised for its foresight, some argued its bets against the securities it created gave it a vested interest in their failure. These securities performed very poorly for the long investors and by April 2010, at least US$5 billion worth of the securities either carried "junk" ratings or had defaulted. One CDO examined by critics which Goldman bet against but also sold to investors, was the $800 million Hudson Mezzanine CDO issued in 2006. In the Senate Permanent Subcommittee hearings, Goldman executives stated that the company was trying to remove subprime securities from its books. Unable to sell them directly, it included them in the underlying securities of the CDO and took the short side, but critics McLean and Nocera complained the CDO prospectus did not explain this but described its contents as "'assets sourced from the Street', making it sound as though Goldman randomly selected the securities, instead of specifically creating a hedge for its own book". The CDO did not perform well, and by March 2008 - just 18 months after its issue - so many borrowers had defaulted that holders of the security paid out "about US$310 million to Goldman and others who had bet against it". Goldman's head of European fixed-income sales lamented in an e-mail made public by the Senate Permanent Subcommittee on Investigations, the "real bad feeling across European sales about some of the trades we did with clients" who had invested in the CDO. "The damage this has done to our franchise is very significant."
2010 SEC civil fraud lawsuitIn April 2010, the U.S. Securities and Exchange Commission (SEC) charged Goldman Sachs and one of its vice-presidents, Fabrice Tourre, with securities fraud. The SEC alleged that Goldman had told buyers of a synthetic CDO, a type of investment, that the underlying assets in the investment had been picked by an independent CDO manager, ACA Management. In fact, Paulson & Co. a that wanted to bet against the investment had played a "significant role" in the selection,
Tourre defense of ABACUS lawsuitThe 2010 Goldman settlement did not cover charges against Goldman vice president and salesman for ABACUS, Fabrice Tourre. Tourre unsuccessfully sought a dismissal of the suit, which then went to trial in 2013. On August 1, a federal jury found Tourre liable on six of seven counts, including that he misled investors about the mortgage deal. He was found not liable on the charge that he had deliberately made an untrue or misleading statement.
Alleged commodity price manipulationA provision of the 1999 financial deregulation law, the Gramm-Leach-Bliley Act, allows commercial banks to enter into any business activity that is "complementary to a financial activity and does not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally". In the years since the laws passing, Goldman Sachs and other investment banks (Morgan Stanley, JPMorgan Chase) have branched out into ownership of a wide variety of enterprises including raw materials, such as food products, zinc, copper, tin, nickel and, aluminum. Some critics, such as Matt Taibbi, believe that allowing a company to both "control the supply of crucial physical commodities, and also trade in the financial products that might be related to those markets", is "akin to letting casino owners who take book on NFL games during the week also coach all the teams on Sundays".
Unauthorized trades by Goldman Sachs trader Matthew Marshall TaylorFormer Goldman Sachs trader Matthew Marshall Taylor was convicted of hiding $8.3 billion worth of unauthorized trades involving derivatives on the S&P 500 index by making "multiple false entries" into a Goldman trading system. When Goldman Sachs management uncovered the trades, Taylor was immediately fired. The trades cost the company $118 million, which Taylor was ordered to repay. In 2013, Taylor plead guilty to charges and was sentenced to 9 months in prison in addition to the monetary damages.
Goldman Sachs Commodity Index and the 2005-2008 Food BubbleFrederick Kaufman, a contributing editor of ''Harper's Magazine'', argued in a 2010 article that Goldman's creation of the Goldman Sachs Commodity Index (now the S&P GSCI) helped passive investors such as pension funds, mutual funds and others engage in food price speculation by betting on financial products based on the commodity index. These financial products disturbed the normal relationship between supply and demand, making prices more volatile and defeating the price stabilization mechanism of the futures exchange. A June 2010 article in ''The Economist'' defended commodity investors and oil index-tracking funds, citing a report by the Organisation for Economic Co-operation and Development that found that commodities without futures markets and ignored by index-tracking funds also saw price rises during the period.
Aluminum price and supplyIn a July 2013 article, David Kocieniewski, a journalist with ''The New York Times'' accused Goldman Sachs and other Wall Street firms of "capitalizing on loosened federal regulations" to manipulate "a variety of commodities markets", particularly aluminum, citing "financial records, regulatory documents, and interviews with people involved in the activities". After Goldman Sachs purchased aluminum warehousing company Metro International in 2010, the wait of warehouse customers for delivery of aluminum supplies to their factories - to make beer cans, home siding, and other products - went from an average of 6 weeks to more than 16 months, "according to industry records". "Aluminum industry analysts say that the lengthy delays at Metro International after Goldman took over are a major reason the premium on all aluminum sold in the spot market has doubled since 2010." The price increase has cost "American consumers more than $5 billion" from 2010 to 2013 according to former industry executives, analysts and consultants. The cause of this was alleged to be Goldman's ownership of a quarter of the national supply of aluminum - a million and a half tons - in network of 27 Metro International warehouses Goldman owns in Detroit, Michigan. To avoid hoarding and price manipulation, the London Metal Exchange requires that "at least 3,000 tons of that metal must be moved out each day". Goldman has dealt with this requirement by moving the aluminum - not to factories, but "from one warehouse to another" - according to the Times. In August 2013, Goldman Sachs was subpoenaed by the federal Commodity Futures Trading Commission as part of an investigation into complaints that Goldman-owned metals warehouses had "intentionally created delays and inflated the price of aluminum". In December 2013, it was announced that 26 cases accusing Goldman Sachs and JPMorgan Chase, the two investment banks' warehousing businesses, and the London Metal Exchange in various combinations - of violating U.S. anti-trust laws, would be assigned to United States District Court for the Southern District of New York Judge Katherine B. Forrest in Manhattan. According to Lydia DePillis of Wonkblog, when Goldman bought the warehouses it "started paying traders extra to bring their metal" to Goldman's warehouses "rather than anywhere else. The longer it stays, the more rent Goldman can charge, which is then passed on to the buyer in the form of a premium." The effect is "amplified" by another company, Glencore, which is "doing the same thing in its warehouse in Vlissingen". Michael DuVally, a spokesman for Goldman Sachs, said the cases are without merit. Columnist Matt Levine, writing for ''Bloomberg News'', described the conspiracy theory as "pretty silly", but said that it was a rational outcome of an irrational and inefficient system which Goldman Sachs may not have properly understood. In December 2014, Goldman Sachs sold its aluminum warehousing business to Ruben Brothers.
Oil futures speculationInvestment banks, including Goldman, have also been accused of driving up the price of gasoline by speculating on the oil futures exchange. In August 2011, "confidential documents" were leaked "detailing the positions" in the oil futures market of several investment banks, including Goldman Sachs, However, another source stated that, "Just before crude oil hit its record high in mid-2008, 15 of the world's largest banks were betting that prices would fall, according to private trading data..." In April 2011, a couple of observers - Brad Johnson of the blog Climate Progress, founded by Joseph J. Romm, and Alain Sherter of CBS MoneyWatch - noted that Goldman Sachs was warning investors of a dangerous spike in the price of oil. Climate Progress quoted Goldman as warning "that the price of oil has grown out of control due to excessive speculation" in petroleum futures, and that "net speculative positions are four times as high as in June 2008", when the price of oil peaked. It stated that, "Goldman Sachs told its clients that it believed speculators like itself had artificially driven the price of oil at least $20 higher than supply and demand dictate." Sherter noted that Goldman's concern over speculation did not prevent it (along with other speculators) from lobbying against regulations by the Commodity Futures Trading Commission to establish "position limits", which would cap the number of futures contracts a trader can hold, and thus prevent speculation. According to Joseph P. Kennedy II, by 2012, prices on the oil commodity market had become influenced by "hedge funds and bankers" pumping "billions of purely speculative dollars into commodity exchanges, chasing a limited number of barrels and driving up the price". The problem started, according to Kennedy, in 1991, when
just a few years after oil futures began trading on the New York Mercantile Exchange, Goldman Sachs made an argument to the Commodity Futures Trading Commission that Wall Street dealers who put down big bets on oil should be considered legitimate hedgers and granted an exemption from regulatory limits on their trades. The commission granted an exemption that ultimately allowed Goldman Sachs to process billions of dollars in speculative oil trades. Other exemptions followed,and "by 2008, eight investment banks accounted for 32% of the total oil futures market".
Danish utility sale (2014)Goldman Sachs's purchase of an 18% stake in state-owned DONG Energy (now Ørsted (company), Ørsted A/S) - Denmark's largest electric utility - set off a "political crisis" in Denmark. The sale - approved on January 30, 2014 - sparked protest in the form of the resignation of six cabinet ministers and the withdrawal of a party (Socialist People's Party (Denmark), Socialist People's Party) from Prime Minister Helle Thorning-Schmidt's leftist governing coalition. According to ''Bloomberg Businessweek'', "the role of Goldman in the deal struck a nerve with the Danish public, which is still suffering from the after-effects of the global financial crisis". Protesters in Copenhagen gathered around a banner "with a drawing of a vampire squid - the description of Goldman used by Matt Taibbi in Rolling Stone in 2009". Opponents expressed concern that Goldman would have some say in DONG's management, and that Goldman planned to manage its investment through "subsidiaries in Luxembourg, the Cayman Islands, and Delaware, which made Danes suspicious that the bank would shift earnings to tax havens". Goldman purchased the 18% stake in 2014 for 8 billion kroner and sold just over a 6% stake in 2017 for 6.5 billion kroner.
Libya investment losses (2013)In January 2014, the Libyan Investment Authority (LIA) filed a lawsuit against Goldman for $1 billion after the firm lost 98% of the $1.3 billion the LIA invested with Goldman in 2007. Goldman made more than $1 billion in derivatives trades with the LIA funds, which lost almost all their value but earned Goldman $350 million in profit. In court documents the firm has admitted to having used small gifts, occasional travel and an internship in order to gain access to Libya's sovereign wealth fund. In August 2014, Goldman dropped a bid to end the suit in a London court. In October 2016, after trial, the court entered a judgment in Goldman Sachs's favor.
Improper securities lending practicesIn January 2016, Goldman Sachs agreed to pay $15 million after it was found that a team of Goldman employees, between 2008 and 2013, "granted locates" by arranging to borrow securities to settle short sales without adequate review. However, U.S. regulation for short selling requires brokerages to enter an agreement to borrow securities on behalf of customers or to have "reasonable grounds" for believing that it can borrow the security before entering contracts to complete the sale. Additionally, Goldman Sachs gave "incomplete and unclear" responses to information requests from SEC compliance examiners in 2013 about the firm's securities lending practices.
1MDB Malaysian sovereign wealth fund scandal (2015-present)According to the Thomson Reuters league tables, Goldman Sachs was the most successful foreign investment bank in Malaysia from 2011 to 2013. In 2013, the bank had a 21% market share in Malaysia's investment banking segment, double that of its nearest rival, mostly due to business with the Malaysian sovereign wealth fund, 1Malaysia Development Berhad (1MDB). In 2015, U.S. prosecutors began examining the role of Goldman in helping 1MDB raise more than $6 billion. The 1MDB bond deals were said to generate "above-average" commissions and fees for Goldman amounting close to $600 million or more than 9% of the proceeds. Beginning in 2016, Goldman was investigated for a $3 billion bond created by the bank for 1MDB. Prosecutors investigated whether the bank failed to comply with the U.S. Bank Secrecy Act, which requires financial institutions to report suspicious transactions to regulators. In November 2018, Goldman's former chairman of Southeast Asia, Tim Leissner, admitted that more than US$200 million in proceeds from 1MDB bonds went into the accounts controlled by him and a relative. Leissner and another former Goldman banker, Roger Ng, together with Malaysian financier Jho Low were charged with money laundering. Goldman chief executive David Solomon felt "horrible" about the ex-staff breaking the law by going around the policies and apologized to Malaysians for Leissner’s role in the 1MDB scandal. On December 17, 2018, Malaysia filed criminal charges against subsidiaries of Goldman and their former employees Leissner and Ng, alleging their commission of misleading statements in order to dishonestly misappropriate US$2.7 billion from the proceeds of 1MDB bonds arranged and underwritten by Goldman in 2012 and 2013. On 24 July 2020, it was announced that the Malaysian government would receive US$2.5 billion in cash from Goldman Sachs, and a guarantee from the bank they would also return US$1.4 billion in assets linked to 1MDB bonds. Put together this was substantially less than the US$7.5 billion that had been previously demanded by the Malaysian finance minister. At the same time, the Malaysian government agreed to drop all criminal charges against the bank and that it would cease legal proceedings against 17 current and former Goldman directors. Some commentators argued that Goldman secured a very favorable deal. In October 2020, it was reported that a foreign subsidiary of Goldman Sachs will plead guilty in a U.S. Department of Justice investigation on the scandal involving the 1Malaysia Development Berhad, 1MDB Malaysian fund. Goldman Sachs will admit to mistakes in auditing its subsidiary and pay more than $2 billion in fines for its subsidiary.
Purchase Petróleos de Venezuela bonds (2017)In May 2017, Goldman Sachs purchased $2.8 billion of PDVSA 2022 bonds from the Central Bank of Venezuela during the 2017 Venezuelan protests, when the country was suffering from malnutrition and hyperinflation. In its original statement, Goldman stated that “We recognize that the situation is complex and evolving and that Venezuela is in crisis. We agree that life there has to get better, and we made the investment in part because we believe it will.”. Venezuelan politicians and protesters in New York opposed to Maduro accused the bank of being of complicit of human rights abuses under the government and declared that the operation would fuel hunger in Venezuela by depriving the government of foreign exchange to import food, leading the securities to be dubbed “hunger bonds.” The opposition-led National Assembly (Venezuela), National Assembly voted to ask the United States Congress, U.S. Congress to investigate the deal, which they called "immoral, opaque, and hypocritical given the socialist government’s anti-Wall Street rhetoric". In a public letter to the bank’s chief executive, , the National Assembly president Julio Borges said that “Goldman Sachs’s financial lifeline to the regime will serve to strengthen the brutal repression unleashed against the hundreds of thousands of Venezuelans peacefully protesting for political change in the country." Sheila Patel, CEO of Goldman Sachs Asset Management’s international division, said in an interview that the incident "turned into a teachable moment within the firm" and "helped sharpen its focus on investing with an eye toward environmental, social and governance policies".
Misreporting transactionsIn March 2019, Goldman Sachs was fined £34.4 million by the City (London) regulator for misreporting millions of transactions over a decade.
Political contributionsGoldman Sachs employees have donated to both major American political parties, as well as candidates and super PACs belonging to both parties. According to the Center for Responsive Politics, Goldman Sachs and its employees collectively gave $4.7 million in the 2014 United States elections, 2014 elections to various candidates, leadership PACs, political parties, 527 groups, and outside spending entities. In 2010, the Securities and Exchange Commission issued regulations that limit asset managers' donations to state and local officials, and prohibit certain top-level employees from donating to such officials.Sara Sjolin
Employee satisfactionThe company has been on the 100 Best Companies to Work For list compiled by ''Fortune (magazine), Fortune'' since the list was launched in 1998, with emphasis placed on its support for employee philanthropic efforts and high employee compensation levels. In 2021, the leaked results of an internal survey were presented on a slideshow that began circulating on the internet, describing 90+ hour work weeks and high levels of employee dissatisfaction among first-year analysts. Some responses to the survey alleged abusive treatment by superiors, a lack of mental health resources, and extremely high levels of stress leading to physical discomfort.
Returnship programGoldman Sachs started a Returnship program in 2008 after research and consulting with other firms led them to understand that career breaks happen and that returning to the workforce was difficult, especially for women. The goal of the Returnship program was to offer a chance at temporary employment for workers. Goldman Sachs holds the trademark for the term 'Returnship'.
CompensationIn the first three months of 2016, the average total compensation per employee was $72,931 for the three months, 44% below the same period in 2015. The average total compensation per employee for the full year of 2006 was $622,000. The average compensation in the first three months of 2013 was $135,594. However, these numbers represent the arithmetic mean of total compensation and are highly skewed upwards as several hundred of the top recipients command the majority of the bonus pools, leaving the median that most employees receive well below this number. In ''Business Weeks September 2008 release of the ''Best Places to Launch a Career'', Goldman Sachs was ranked No. 4 out of 119 total companies on the list. It was ranked No. 62 on the list of best places to work by ''Fortune Magazine'' in 2017. CEO Blankfein received a $67.9 million bonus in 2007, his first year. He chose to receive "some" cash unlike his predecessor, Paulson, who chose to take his bonus entirely in company stock. In 2011, the bank had nearly 11,000 more staffers than it did in 2005, but performances of workers drastically declined. In 2011, Goldman's 33,300 employees generated $28.8 billion in revenue and $2.5 billion in profit, but it represented a 25% decline in revenue per worker and a 71% decline in profit per worker compared with 2005. In 2011, the company reduced its workforce by 2,400 positions.
Officers and directorsNotable members currently on the board of directors of the company are M. Michele Burns, Bill George (professor and author), Bill George, James A. Johnson (businessman), James A. Johnson, Ellen J. Kullman, Lakshmi Mittal, Adebayo Ogunlesi, Peter Oppenheimer, Debora Spar, Mark Tucker (business), Mark Tucker, and David Viniar. Directors receive annual compensation of $600,000. The company's officers are listed on its website as follows:
Headquarters and other major officesIn 1957, the company's headquarters were relocated to 20 Broad Street (Manhattan), Broad Street, New York City. Goldman Sachs's global headquarters is now at , New York City, and the company has major offices and regional headquarters in London, Warsaw, Bangalore, Hong Kong, Tokyo and Salt Lake City. The Bangalore office, inaugurated among much fanfare in 2019, was the third-largest global office for Goldman Sachs.
List of chairmen and CEOs# (1869–1894) # (1894–1928) # Waddill Catchings (1928-1930) # (1930–1969) # (1969–1976) # John C. Whitehead and John L. Weinberg (1976–1985) # John Weinberg (1985–1990) # (1990–1992) # Stephen Friedman (1992–1994) # (1994–1998) # (1999–2006) # (2006–2018) # David M. Solomon (2018–present)
Goldman Sachs employees turned authors*Dambisa Moyo *Chetan Bhagat *Greg Smith
Goldman Sachs research papersThe following are notable Goldman Sachs research papers: * Global Economics Paper No: 93 (South Africa Growth and Unemployment: A Ten-Year Outlook): Makes economic projections for South Africa for the next 10 years. Published on May 13, 2003. * Global Economics Paper No: 99 (Dreaming With BRICs: The Path to 2050): Introduced the BRIC concept, which became highly popularized in the media and in economic research from this point on. It also made economic projections for 2050 for the G7 and South Africa as well. These were the first long-term economic projections covering the GDP of numerous countries. Published on October 1, 2003. * Global Economics Paper No: 134 (How Solid are the BRICs): Introduced the Jim O'Neill, Baron O'Neill of Gatley#Next Eleven, Next Eleven concept. Published on December 1, 2005. * Global Economics Paper No: 173 (New EU Member States - A Fifth BRIC?): Makes 2050 economic projections for the new European Union, EU member states as a whole. Published on September 26, 2008. * Global Economics Paper No: 188 (A United Korea; Reassessing North Korea Risks (Part I)): Makes 2050 economic projections for North Korea in the hypothetical event that North Korea makes large free-market reforms right now. Published on September 21, 2009. * The Olympics and Economics 2012: Makes projections for the number of gold medals and told Olympic medals that each country wins at the 2012 Olympics using economic data and previous Olympic data. Published in 2012.
See also* List of former employees of Goldman Sachs
Further reading* * William D. Cohan, Cohan, William D. (2011). ''Money and Power, Money and Power: How Goldman Sachs Came to Rule the World'' * * * * * * *
External links* * Archived a