Insider Finance - Business - Wall Street: Layoffs coming at Goldman

The latest in finance.
View in browser
INSIDER
Subscribe

10 THINGS ON WALL STREET

Welcome back. Dan DeFrancesco checking in from NYC and hoping you had a fantastic first night of Hanukkah, for those who celebrate.

All eyes are currently on Elon Musk's Twitter, after the billionaire on Sunday posted a poll asking users whether he should step down as the company's head. He also said he would abide by its result. The poll has now closed, with 57.5% voting in favor of Musk stepping down. This is a developing story and we will be keeping you updated with the latest

Today we've also got stories on how top firms are trying to keep costs down when moving to the cloud, the tropical islands Google cofounder Larry Page keeps buying up, and some last-minute gift ideas

But first, the Goldman cuts go deep.


If this was forwarded to you, sign up here. Download Insider's app here


David Solomon

1. Dark days at Goldman.

The vibes aren't very high at Goldman Sachs these days.

On Friday, news leaked that the bank was planning to lay off up to 8% of its staff as soon as January

Having to enact such deep cuts is just the latest in what has been a string of bad news for one of Wall Street's top banks.

So how did we get here?

First the M&A and IPO market ground to a halt, two areas that typically generate significant fees for the bank, and which eventually led to Goldman cutting dozens of bankers across the globe

By the summer, insiders were questioning the value of Goldman's push into consumer banking, which eventually led to internal conversations about whether a pivot was necessary. A few months later, CEO David Solomon announced a restructuring of the bank that was an acknowledgement of the struggles the consumer division had faced. 

Meanwhile, junior bankers are still upset with work conditions and details of a $12 million settlement to a female partner over claims of sexism and mistreatment were reported. And Solomon's much-publicized side gig as a DJ is starting to wear thin on insiders

Even the good news can't catch a break. The announcement of Goldman's newest partner class, a typically lauded event on social media, was quickly overshadowed by the implosion of crypto exchange FTX, which occurred the same week. 

And it really isn't all that bad. Goldman's annual trading revenue is set to beat last year's mark, and the stock price, while down this year, is outperforming the S&P 500 index and the other large US banks. Goldman's bankers and others on Wall Street still enjoy pay packages that are beyond that of most American workers.

But it shows that even Wall Street's busiest bankers aren't immune to the slowdown in dealmaking and markets volatility that has made this year so difficult.

And we might not be out of the woods yet. Some portion of Goldman's cuts are being made with an eye to 2023 and 2024, suggesting that the firm's leaders don't expect a return to go-go days anytime soon.

Click here to read more about the cuts set to hit Goldman Sachs.


In other news:

Nerds

2. Move to the public cloud, they said. You'll save money, they said. Migrating off physical servers came with promises of big savings, but finance firms are finding a switch to the public cloud to still come with its own expenses. Here's how top tech execs are trying to keep costs down while using the cloud

3. Revenge of the "nerds." After a difficult run, Quant hedge funds are having a big 2022 while the rest of Wall Street struggles, Bloomberg reports. Here's why funds like AQR, Man Group, and Aspect Capital are having a big year

4. Larry Page's super-secret island hideaways. The Google cofounder has a growing collection of tropical islands. Here's more on Page's portfolio of islands

5. Blackstone's real-estate fund for the wealthy is getting a closer look from regulators. Blackstone Real Estate Income Trust has drawn the interest of the SEC after a string of client withdrawals, Bloomberg reports. Starwood Real Estate Income Trust, which also saw clients pull out money, is also getting attention from the SEC, the website reports. More on why regulators are keen to know more

6. PE in space. Private-equity firm Advent announced plans to acquire satellite maker Maxar Technologies for $6.4 billion in a deal that included Goldman Sachs, JPMorgan, and Morgan Stanley.  Here are the details on the transaction.

7. Wall Street analysts don't think Elon Musk's involvement in Twitter is helping Tesla. Musk has sold $23 billion worth of Tesla stock this year, and one analyst said he's using "Tesla as his own ATM machine to keep funding" Twitter.

8. Fintechs are taking heat for how they handled PPP loans. A new federal investigation points the finger at fintechs for the amount of fraud that occurred with the Paycheck Protection Program. Here's which fintechs are taking heat and why that could spell bad news for small businesses

9. Too much house to handle. Bigger isn't always better for the rich, who are increasingly skewing away from buying mansions. Here's why the wealthy want to downsize

10. Fear not, we've got gift ideas for procrastinators. Just because you waited until the last minute doesn't mean you're screwed. Here are 48 last-minute gift ideas


Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London. 

 

Key phrases

Older messages

Google founders’ wild lives — Lost Compass — Luxury boom

Sunday, December 18, 2022

A selection of our best stories from the past week, as chosen by a top editor. Subscribe to Insider View in browser INSIDER WEEKLY Hi, I'm Matt Turner, the editor in chief of business at Insider.

Wall Street: Activist investing ain’t easy

Friday, December 16, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hey there. Dan DeFrancesco checking in from a NYC that just keeps getting colder. The House Financial Services

A vaccine for cancer

Friday, December 16, 2022

Plus: Inside a Japan grocery store, and fiberglass mattress mystery. View in browser Subscribe Only fascinating stories Matt Turner, December 14, 2022 Hello, Insiders. Matt Turner here, filling in for

Wall Street: Young bankers spill the beans

Friday, December 16, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET It's almost Friday! Dan DeFrancesco in NYC here. I'm still laughing at more photos I'm finding from

Gen Z’s slang, decoded

Friday, December 16, 2022

Plus: SBF's senior prank, and the top 10 airlines in the world. View in browser Subscribe Nicholas Carlson December 15, 2022 Hello, Insiders. Glad to be back. Here's a story our readers were

🥷 Time to get tactical

Sunday, February 5, 2023

The US is over-employed | The IMF told China to up its game | TOGETHER WITH Hi Reader, here's what you need to know for February 6th in 3:13 minutes. 📝 We all need a refresher from time to time,

🚀 IG's founders unveil their next act

Sunday, February 5, 2023

Plus, why does every app have a subscription now? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Tech’s new era — Fraud reckoning — China’s grim omen

Sunday, February 5, 2023

A selection of our best stories from the past week, as chosen by a top editor. Subscribe to Insider View in browser INSIDER WEEKLY Hi, I'm Matt Turner, the editor in chief of business at Insider.

The DINKWAD trend taking over TikTok

Saturday, February 4, 2023

Plus: Tips for preserving your memory, and working on a cruise ship. View in browser Subscribe February 4, 2023 Hello, Insiders! Welcome to our Saturday edition, filled with fascinating reads for your

The job market won’t quit

Saturday, February 4, 2023

Bloomberg Weekend Reading View in browser Bloomberg The US job market just won't quit. While that's a sign of underlying strength for the economy and great news for American workers, it's

‘Apocalypse postponed’

Friday, February 3, 2023

Bloomberg Evening Briefing View in browser Bloomberg Forget all that talk of falling inflation, moderating wages, record-low unemployment and possible soft landings. Wall Street says 2023 will likely

The Art of Short Selling

Friday, February 3, 2023

Plus: Deutsche Bank, Custodia Bank, Late Fees ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

ChatGPT may be coming for our jobs

Friday, February 3, 2023

Plus: A new era in tech, and why some packages take strange journeys. View in browser Subscribe February 3, 2023 Hello, Insiders. Steve Jobs used to talk about how humans are one of the slowest animals

Wall Street: Exodus at ExodusPoint

Friday, February 3, 2023

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET TGIF! Dan DeFrancesco in New York, but I'll be on my way to China shortly to pick up my new Porsche that

[New post] Does the bonus cap work?

Friday, February 3, 2023

BankUnderground posted: " Qun Harris, Ieva Sakalauskaite and Misa Tanaka After the 2007–08 Global Financial Crisis (GFC), several jurisdictions introduced remuneration regulations for banks with