Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS
Menu AdvisorHub
  • News
      • Latest News
          • Reading top financial advisor newsThis Week’s Top 5: Wells Consolidates Regions, a $6-Mln Merrill Breakaway, And More
          • Fast AdvisorThis Week in RIA M&A: Focus Adds Partner Firm as Other PE-Backed Buyers Strike
          • Advisor and lassoRockefeller Lassoes Merrill Texas Team with Nearly $5-Mln Revenue
          • Adrianne Hoy, Edward Dawson, Kyle Dawson, Patty Bribiesca and Katherine Tawoda left Wells Fargo for UBS in San Diego last month.Goin’ Up? Wells Fargo Team Moves Seven Floors to UBS in San Diego
        • Close
      • Advisor Moves
          • Advisor and lassoRockefeller Lassoes Merrill Texas Team with Nearly $5-Mln Revenue
          • Adrianne Hoy, Edward Dawson, Kyle Dawson, Patty Bribiesca and Katherine Tawoda left Wells Fargo for UBS in San Diego last month.Goin’ Up? Wells Fargo Team Moves Seven Floors to UBS in San Diego
          • Financial AdvisorFired by Wirehouse for Unapproved Outside Business, Texas Broker Relocates to Stifel
          • Armando A. Ureña (center), formerly a Wells Fargo Advisors managing director, was recruited by Snowden Lane Partners to join its office in Coral Gables, Florida.Snowden Snags Wells Fargo Int’l Broker Managing $360 Million in Miami
        • Close
      • Enforcement
          • Dining expenseFinra Dings Ex-Morgan Stanley Broker in Los Angeles over Expense Lapse
          • Judge rulesFinra Bars Ex-Wells Broker Who Raised $3.5-Mln For Software Company
          • Advisor fraudFinra Suspends Former NJ Broker Who Borrowed from Clients to Pay Debts
          • Finra rulingArbitrator Grants Ex-Merrill Bank Broker’s Expungement, Calls Firing ‘Reckless’
        • Close
      • Markets
        • `Nothing Safer Than Cash’: Tech Rout Puts Silicon Valley on Edge
        • ‘Any News Is Bad News’ as Earnings Fail to Save Equity Bulls
        • ‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
        • ‘Beaten Down’ ETF Is a Way to Play Inverted Curve, BofA Says
        • Close
      • Opinion
          • Opinion-How-Will-The-Coronavirus-Affect-The-Stock-Market-Opinion: Coronavirus – What Advisors Need to Know
          • opinion-investors-conquered-fees-next-up-is-their-own-behaviorOpinion: Investors Conquered Fees but Not Their Own Behavior
          • Investor-Confidence-In-Stocks-Rightly-Declines-Opinion-772x485Investor Confidence in Stocks Rightly Declines: Opinion
          • Opinion-Schwabs-Zero-Commission-Decision-Challenges-Its-Ria-ClientsOpinion: Schwab’s Zero Commission Decision Challenges Its RIA Clients
        • Close
      • Fintech News
          • Fintech Cryptocurrency ClearingFintech Firm Apex Clearing Agrees to Go Public Via SPAC
          • System outageMerrill Systems Hiccuped on Thursday as Stocks Slid
          • 7 dollar rolls‘The Rock’ Invests in Finance App Acorns, and New Users Get $7
          • TraderHigh-Frequency Traders Love Business With Robinhood
        • Close
      • From the Publisher
          • 2021 PredictionsFrom the Publisher: Sirianni’s Predictions for 2021
          • Josh Rogers – 772×485Seven Questions with Tony Sirianni: Josh Rogers, Founder and CEO, Arete Wealth
          • Phil Hildebrandt — 772×485Seven Questions with Tony Sirianni: Phil Hildebrandt, Principal, CEO of Segall Bryant & Hamill
          • Christian Hyldahl, President of Varium Investment Partners-772×485An AdvisorHub Interview with Christian Hyldahl, President of Varium Investment Partners
          • John Peluso – 772×485Timely interview with John Peluso and AdvisorHub CEO Tony Sirianni
          • Louis Dworsky Coronacrash Interview-772×485Coronacrash Update: Hayden Royal’s Louis Dworsky & Tony Sirianni
          • Stratos_Jeff pic.jpg-772×485Coronacrash Update: Stratos Wealth Partners’ Jeff Concepcion & Tony Sirianni
          • coronacrash ben harrison – 772×485Coronacrash Update: BNY Mellon | Pershing’s Ben Harrison & Tony Sirianni
        • Close
    • Close
  • Deals & Comp
  • Recruiting Wire
  • Breakaway Center
  • Resources
    • resources-home-menuResources Home
    • PRACTICE MANAGEMENT RESOURCESPractice Management Resources
    • Transition ResourcesTransition Resources
    • Fintech ResourcesFintech Resources
    • menu fintechFintech Product Directory
    • Menu-Institute-772×485Institute
    • Boutique Wealth AdvisorsBoutique
    • EventsEvents
    • Asset Manager Hub
    • Close
  • AdvisorHub TV
  • Podcasts
  • RIA Center
  • Virtual Summit
close X
January 7, 2020

Goldman Creates New Consumer & Wealth Sector

by AdvisorHub Staff
|
News
|
Goldman Sachs
|
No Comments
Share This
SUBMIT A TIP
Goldman-Creates-New-Consumer-Wealth-Sector-
Goldman Sachs Building in lower ManhattanTimothy Fadek/Corbis/Getty Images

Goldman Sachs Group said Tuesday that it has created a new business segment called Consumer & Wealth Management to demonstrate the growing importance of individual clients to its core results.

The new segment will consolidate management, incentive, and private banking and lending fees collected by Goldman’s private client advisors and private bankers, as well as unsecured loan and deposit revenue booked on the firm’s digital “Marcus” platform, according to a regulatory filing and press release.

Goldman did not previously break out its wealth management results, which were subsumed into a broader investment management division that was dominated by its asset management business. Under the new reporting structure, the investment management division has been renamed asset management and will exclude wealth management and most lending revenue.

Interest and other revenue from loans and deposits had been included in a volatile reporting line called investing & lending that many analysts and investors found confusing.

“The firm believes this new segment presentation, which is part of its ongoing commitment to organizing the firm in a client-centric way, will not only better reflect how the firm is now managed, but also help drive greater accountability for executing its forward strategy,” Goldman said in the press release.

The investment banking and trading powerhouse signaled its embrace of retail wealth management—a segment that it long eschewed—in July when it bought United Capital Financial Advisors, which assimilates small registered investment advisory and financial planning practices and oversaw $25 billion of customer assets at the time.

Like other Wall Street powerhouses, Goldman has turned to wealth management fees as a counterbalance to volatile trading and banking revenue.

On a pro forma basis, the new consumer and wealth sector booked $3.8 billion of net revenue in the first nine months of 2019, $3.2 billion of which came from wealth management, according to Tuesday’s filing with the Securities and Exchange Commission. The business is the smallest of Goldman’s four business sectors, but its $2.6 billion of management and incentive fees exceeded the $2.0 billion that would have been booked in asset management under the new reporting structure, according to the filing.

Pretax earnings in the consumer and wealth sector would have totaled $256 million in the first nine months of 2019, Goldman said in the regulatory filing. The company as a whole had $8.26 billion of pretax profit in the first three quarters of this year, including $3.5 billion in global markets, $2.3 billion in investment banking and $2.3 billion in asset management.

Goldman will report its 2019 fourth-quarter results under the new alignment on January 15.

Investing and lending results that Goldman previously consolidated on the now-defunct reporting line will be dispersed among Investment Banking (corporate loans and acquisition financing), Global Markets (formerly institutional client services, which will be credited with structured finance and warehouse lending fees), Asset Management (proprietary equity investments and securities lending fees) and Consumer & Wealth Management (credit card fees, unsecured consumer loan fees and private wealth lending fees).

Goldman’s traditional retail brokerage business in the U.S. remains small, with fewer than 500 advisors in 13 private wealth offices.

A company spokesman declined to disclose the exact number of Goldman’s private wealth advisors or of those at United Capital. The California-based RIA had 220 advisers in 90 offices at the time of its last regulatory filing as an independent firm in April.

Like this article? Let AdvisorHub come to you!  Sign up

Share This
No Comments

Leave a Reply Cancel reply

Tony Sirianni Podcast Banner

CORONACRASH NEWS

  • Big U.S. Banks’ Vows to Halt Job Cuts End as Virus Endures

    Big U.S. Banks’ Vows to Halt Job Cuts End as Virus Endures

    Feb 26, 2021
  • Raymond James Executive: We’re Open to Flexible Work Arrangements for Advisors

    Raymond James Executive: We’re Open to Flexible Work Arrangements for Advisors

    Feb 25, 2021
  • Finra Bars Ex-Wells Broker Accused of Improperly Seeking Virus Relief Loan

    Finra Bars Ex-Wells Broker Accused of Improperly Seeking Virus Relief Loan

    Feb 12, 2021
  • RayJay Private Client Profit Dips 8%, Employee Channel Recruiting Slips

    RayJay Private Client Profit Dips 8%, Employee Channel Recruiting Slips

    Jan 28, 2021
  • Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Jan 25, 2021

NEWS

  • This Week’s Top 5: Wells Consolidates Regions, a $6-Mln Merrill Breakaway, And More

    This Week’s Top 5: Wells Consolidates Regions, a $6-Mln Merrill Breakaway, And More

    Mar 6, 2021
  • This Week in RIA M&A: Focus Adds Partner Firm as Other PE-Backed Buyers Strike

    This Week in RIA M&A: Focus Adds Partner Firm as Other PE-Backed Buyers Strike

    Mar 5, 2021
  • Rockefeller Lassoes Merrill Texas Team with Nearly $5-Mln Revenue

    Rockefeller Lassoes Merrill Texas Team with Nearly $5-Mln Revenue

    Mar 5, 2021
  • Goin’ Up? Wells Fargo Team Moves Seven Floors to UBS in San Diego

    Goin’ Up? Wells Fargo Team Moves Seven Floors to UBS in San Diego

    Mar 5, 2021
  • Wells Fargo to Merge Wealth Management Sales Regions

    Wells Fargo to Merge Wealth Management Sales Regions

    Mar 4, 2021

Recruiting Winners: 2020 Year in Review

FINANCIAL INDUSTRY PODCASTS

AllIndependence
The must listen-to podcast for financial advisors by Tony Sirianni. Guests to include:
-Ron Kruszewski
-Shirl Penney
-Penny Pennington
-Eric Clarke
and many more
Michael Kitces and Carl Richards discuss financial advising topics.
The “new advice value stack,” and how firms can use it to help maximize their own value propositions for their clients.
Interviews and insights for advisors curious about switching to a new broker dealer.
The Brighthouse Financial Insights Panel is a group of leading, independent experts providing powerful insights into the big challenges facing you and your clients.
Powering Independence Podcast, insights and ideas for RIAs, presented by Dynasty Financial Partners. A podcast dedicated to presenting fresh ideas and best practices for the wealth management industry.
As an industry expert, Frank LaRosa provides guidance and advice on a host of topics from recruiting and transitions, succession planning, practice management, M&A and more.
Our goal is to unlock the challenges to reveal the opportunities and what it means to provide advice in the 21st century.
Go behind the scenes with registered investment advisors and other related independent business model experts
As a nationally recognized recruiter and consultant to financial advisors, Mindy Diamond has unmatched experience in introducing advisors to the independent space.
The must listen-to podcast for investors, venture capitalists and financial advisors, with Tony Sirianni and Paul Dietrich.
An Introduction to Independence: 5 Key Episodes to Jumpstart Your Knowledgebase
Jay is an investment strategist, CERTIFIED FINANCIAL PLANNER™ and business consultant to financial advisors.
We interview top financial advisors and visionary voices to bring you the strategies, tips, and tools you need to make a difference in people’s lives.
A financial literacy and commentary show that features a number of investors, financial experts, professional athletes, business owners and more.
Join Sound Financial Group CEO Paul Adams and President Cory Shepherd every week, as they help you Design and Build a Good Life™.
The Kuderna Podcast, focusing on wealth in it's original meaning- a state of well being.
Timeless wisdom, actionable information you can use right now to make smarter investment decisions.
Made for and dedicated to those folks serious about their financial plan.
Suzanne Siracuse asks the questions nobody else asks, as influencers and interviewer collide in her new and truly unique podcast series The Big Reveal.
Our webcast is dedicated to helping our viewers get real insights by avoiding the cognitive dissonance of today’s media outlets and biased editorial filters.

Latest News 
Advisor Moves 
Enforcement 
Opinion 
  • About Us
  • Contact Us
  • Advertise
  • Events
  • Careers

 get our newsletter

Industry focused content and breaking news.

SIGN UP

Contact Us

EMAIL US
1707 Post Oak Blvd.
#484
Houston, TX 77056

© 2021 AdvisorHub
  • |Terms of Use
  • |Privacy Policy
  • |Advertise
  • |Careers
  • Facebook
  • Linkedin
  • Twitter

Back to top