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What the heck is going on at Goldman Sachs
  + stars: | 2023-06-23 | by ( Matt Turner | ) www.businessinsider.com   time to read: +5 min
It's been non-stop negativity over at Goldman Sachs recently. The bad news just keeps rolling in over at Goldman Sachs. The Economist put a fine point on this earlier this year when it ran a cover story titled "The humbling of Goldman Sachs." But Goldman Sachs' historic partnership model has given it a distinct culture, where these kinds of things matter. Whatever the truth is, it's clear that Goldman Sachs and David Solomon are going to remain in the headlines for some time.
Persons: It's, Goldman Sachs, David Solomon's, Dakin Campbell, grumbling, Solomon, Goldman, David Solomon, it's, Dina Powell McCormick, Gregg Lemkau, Stephen Scherr, Eric Lane, Katie Koch, Fred Baba, he's, he'd, John Rogers, Tony Fratto Organizations: Goldman, Wall Street, The New York Times, Silicon Valley Bank, DJ, Discovery Land Company, New York Times, Air Mail Locations: California
"The Board fully supports the use of the Goldman Sachs planes for travel, just as it supported the use of private aircraft by previous Goldman Sachs executives," said Tony Fratto, a company spokesman. "Executives at Goldman Sachs have been flying on private aircrafts for decades as it is proven to be the most secure, effective, and cost-efficient solution to meet the extensive travel obligations for CEOs of firms like Goldman Sachs — which is why all of our peer institutions also extensively use private aircraft." John Waldron, president of Goldman Sachs Reuters/Brendan McDermidOccasionally, Solomon and Waldron switch planes, particularly when Waldron flies overseas. Goldman Sachs has a sponsorship deal with pro golfer Patrick Cantlay. "These estimates wildly overstate the cost of such flights to Goldman Sachs and are not an accurate representation," he said.
Goldman Sachs CEO David Solomon owns shares in a luxury real-estate developer, according to the NYT. David Solomon, the chief executive of Goldman Sachs, is known to fly to the Bahamas, where he has a home. The valuation the bankers gave for Discovery Land fell well short of $1 billion, and Goldman did not win that deal. Discovery Land eventually sold $300 million of shares without the help of any bank in early 2021. Insider has previously reported that at least a small number of Goldman Sachs partners and other insiders have complained about Solomon's personal jet use, as well as his side gig as a DJ.
On Feb. 28, top executives at Goldman Sachs staged an “investor day” to reassure shareholders that the bank would rebound after a disappointing 2022. More than a decade earlier, Mr. Solomon had purchased a multimillion-dollar beachfront home from the Discovery Land Company, which built and managed Baker’s Bay. Mr. Solomon is not just a Discovery customer. He’s also a part owner of the private company and for years has informally advised its founder — even as Goldman Sachs vied for work with Discovery. Many corporate chief executives, of course, sit on other companies’ boards of directors, but such external commitments are much less common in the heavily regulated banking industry.
We spent a day at the exclusive members-only club, where the wealthy escape to homes starting at $2.7 million. Raquette Lake Camp; Tyler Hill Camp; Timber Lake Camp; Camp Modin; Samantha Lee/InsiderStressed-out parents at some of the country's fanciest summer camps are driving staff nuts over their kids' photos. Maximilian BüsserSwitzerland-born Maximilian Büsser left corporate jobs at large watch companies to start his own brand, MB&F. The luxury watch designer, who travels between Dubai and Geneva, is known for producing futuristic-looking timepieces inspired by characters like Captain Kirk, and that sell for up to $500,000. Inside the daily routine of a luxury watch brand founder.
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