Lost Sol
Goldman Sachs’ latest quarterly results, released on Tuesday, revealed profits that declined 33% year-over-year, compounding a weak Q2, when the bank’s bottom line shrunk 58%.
That wasn’t the only development yesterday where the investment giant skipped a beat. CEO David Solomon has also decided to step back from his side hustle — by night, performing as a DJ under the moniker DJ D-Sol — due to “media attention” surrounding the hobby reportedly distracting him from his day job of leading one of Wall Street’s most vaunted firms.
Below decks
In his 5-year tenure, the CEO has come under fire for a series of controversies: seeking to impose corporate discipline in Goldman’s loose partner structure; sparring over bonuses and company restructuring; overseeing the infamous 1MBD fund; and paying off sexual harassment settlements.
Now, with Goldman’s earnings reaching a 3-year low on consumer losses, the company is pulling back on its efforts to pivot toward “Main Street”. With the launch of Marcus products in 2016, the bank was looking to build a sturdier business — dealmaking is wildly profitable, but much harder to predict than steady fee-generating businesses like managing deposits and wealth management.
But, as it turns out, building a “boring” business based on deposits, loans, and credit cards was harder than anticipated — so, for now, Goldman will stick to what it knows best: the world of high finance.
