Goldman Sachs unveils plan to reverse trading slump

Wednesday, 13 September 2017, 08:57:24 PM. Goldman Sachs has a plan to fix its slumping trading business — just give it three years. That was the clunker of a pitch Tuesday from a top Goldman exec, who said the Wall Street giant aims to boo…
Goldman Sachs has a plan to fix its slumping trading business — just give it three years. That was the clunker of a pitch Tuesday from a top Goldman exec, who said the Wall Street giant aims to boost its revenue by $5 billion, or roughly 17 percent, by 2020 — even as its trading operation weathers a mercilessly stagnant market for bonds, currencies and commodities. Touting plans to hire more traders and woo corporate clients, co-chief operating officer Harvey Schwartz nevertheless warned investors on getting their hopes too high before the end of the three-year period, saying that trading since July has “felt a lot like the first and second quarters.” Goldman Sachs isn’t the only bank that has been dogged by lackluster trading profits this year. JPMorgan Chase CEO Jamie Dimon warned separately on Tuesday that his bank’s trading revenue was poised to plummet 20 percent in the current quarter. Echoing comments from Citigroup CFO John Gerspach — who said Monday his bank’s trading would be off by about 15 percent — Dimon warned that trading has been especially light versus last year, when it was goosed by volatility related to Brexit and the US presidential election season. At a Tuesday conference hosted by Barclays, Goldman’s Schwartz said the bank aims to increase revenue in the longer term by hiring more trading talent and winning corporate clients in commodities and currencies. Looking to shrink its reliance on the troubled hedge fund sector, Goldman is likewise expanding...Read more
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