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☆ Goldman Scores a Win With Sharply Higher Earnings
▼ + stars: | 2024-01-16 | by ( Annamaria Andriotis | Charley Grant | ) www.wsj.com time to read: 1 min

When Goldman Sachs entered the credit card space in 2019, many consumer banks were concerned that a new competitor had emerged. Photos: ReutersGoldman Sachs reported sharply higher earnings for the fourth quarter, giving the Wall Street Goliath a boost after a run of lackluster results. But the strength wasn’t in Goldman’s traditional powerhouses, investment banking and trading. Instead, it was asset and wealth management, where Goldman Chief Executive David Solomon has pinned much of its hopes. The unit reported a 23% jump in revenue, while revenue from both investment banking and trading were down.

Persons: Goldman Sachs, David Solomon Organizations: Goldman

☆ Got $60 Million? Goldman Sachs Wants to Lend You More
▼ + stars: | 2024-01-14 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

Goldman Sachs is shifting to do more lending to private-wealth clients, individuals and families with an average of $60 million with the bank. Photo: Jutharat Pinyodoonyachet for The Wall Street JournalGoldman Sachs has given up on lending to Main Street consumers. Now it’s doubling down on wealthy clients. The Wall Street giant is increasing lending to its private-wealth clients, individuals and families who on average have $60 million with the bank. In its trading department, loans to institutional clients, including hedge funds seeking to borrow for stock purchases, are on track to produce the highest revenue in at least three years.

Persons: Goldman Sachs Organizations: Wall Street

☆ A Divorce With Apple, Internal Strife: How Goldman’s Main Street Bet Failed
▼ + stars: | 2023-12-02 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

At an off-site in upstate New York last month, during a dinner lasting roughly three hours, Goldman Sachs Chief Executive David Solomon told partners that the firm had made some mistakes with consumer lending. But, he said, the business wasn’t as bad as they thought and they didn’t understand the details. He wouldn’t tolerate partners trash-talking Goldman’s decision to get into consumer lending, he told them. Goldman has known for a while that consumer lending wasn’t really working out, and the bank has been looking for the exits. The tech giant recently sent a proposal to Goldman that would pull the plug on their credit-card partnership, the crown jewel of the business.

Persons: Goldman, David Solomon Organizations: Apple Locations: New York

☆ Apple Pulls Plug on Goldman Credit-Card Partnership
▼ + stars: | 2023-11-29 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

Apple is pulling the plug on its credit-card partnership with Goldman Sachs , the final nail in the coffin of the Wall Street bank’s bid to expand into consumer lending. The tech giant recently sent a proposal to Goldman to exit from the contract in the next roughly 12-to-15 months, according to people briefed on the matter. The exit would cover their entire consumer partnership, including the credit card the companies launched in 2019 and the savings account rolled out this year.

Persons: Goldman Sachs, Goldman Organizations: Apple

Cara LombardoCara Lombardo is a senior reporter for The Wall Street Journal in New York. She and her colleagues regularly break market-moving news on the biggest and most interesting deals and activist fights. In 2021, she was part of a team that won a Gerald Loeb Award for the paper’s coverage of Amazon’s business practices. She joined the Journal in 2017 and previously covered breaking news and the beverage industry. She has undergraduate and master’s degrees in accounting and a master’s degree in journalism, all from the University of Wisconsin-Madison.

Persons: Cara Lombardo Cara Lombardo, Gerald Loeb Organizations: Wall Street, University of Wisconsin - Madison, LinkedIn Locations: New York

Charley GrantCharley Grant is a banking reporter at The Wall Street Journal based in New York. Previously, he was a Heard on the Street columnist. He is a CFA charter holder.

Persons: Charley Grant Charley Grant Organizations: Wall, Journal, CFA Locations: New York

☆ Wall Street Eyes Nikki Haley as Trump Spoiler
▼ + stars: | 2023-11-18 | by ( Cara Lombardo | Annamaria Andriotis | ) www.wsj.com time to read: 1 min

Big hitters on Wall Street are lining up to support Nikki Haley ’s long-shot bid to snatch the 2024 Republican presidential nomination from Donald Trump. “There’s a desperate, desperate hunt for anybody but Trump,” said one of the roughly 30 senior executives The Wall Street Journal spoke with to gauge the mood of the finance set roughly a year ahead of the election.

Persons: Nikki Haley ’, Donald Trump, “ There’s, Trump, ” Organizations: Wall

☆ Fed Probes Morgan Stanley’s International Wealth-Management Practices
▼ + stars: | 2023-11-09 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

Wealth management is a critical source of revenue for Morgan Stanley that helps offset droughts in deal making and trading. Photo: Angus Mordant/Bloomberg NewsMorgan Stanley ’s wealth-management arm is being scrutinized by the Federal Reserve, which is looking into whether the bank has sufficient controls in place to prevent rich foreign customers from laundering money. The Fed has been probing how Morgan Stanley vets foreigners and the origins of their money before taking them on as customers, according to people familiar with the matter. What started out as a routine review a few years ago escalated after regulators found the bank’s due diligence on clients and anti-money-laundering efforts lacking.

Persons: Morgan Stanley, Angus Mordant, Bloomberg News Morgan Stanley ’ Organizations: Bloomberg News, Federal Reserve

☆ Goldman Moves to Unload GM Credit Card
▼ + stars: | 2023-11-07 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

Goldman Sachs has been looking to lower expenses at its card programs and determined that it is likely to move forward with selling the partnerships if it can’t cut costs sufficiently. Photo: Richard Drew/Associated PressGoldman Sachs plans to begin a process to unload its General Motors credit-card program in another step away from its failed foray into consumer lending. The bank on Tuesday informed a group of employees within its Platform Solutions division, who work on the GM card, that a process to find a new issuer will begin soon, people familiar with the matter said. GM is expected to run the process.

Persons: Goldman Sachs, Richard Drew, Associated Press Goldman Sachs Organizations: Associated Press, Motors, Solutions, GM

☆ Goldman Sachs Promotes 608 Managing Directors
▼ + stars: | 2023-11-02 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

When Goldman Sachs entered the credit card space in 2019, many consumer banks were concerned that a new competitor had emerged. Photos: ReutersGoldman Sachs on Thursday promoted 608 employees to the role of managing director, a smaller group than the last class two years ago. The 2021 class was a record, with 643 employees promoted to managing director. But the 2023 class is still much bigger than the previous few classes before the pandemic. The 2019 class, for example, had 465 employees.

Persons: Goldman Sachs

☆ Ted Pick Is a Math Whiz Among Math Whizzes. He’s the New Morgan Stanley CEO
▼ + stars: | 2023-10-26 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

A group of Morgan Stanley executives attending a post-workday dinner in London were ready to call it a night. Ted Pick wanted to play a game. The veteran banker, who had organized the outing, challenged his colleagues to beat him at math equations. They began throwing out six-figure numbers to be multiplied by other large numbers. He even beat one executive who was using a calculator.

Persons: Morgan Stanley, Ted Pick, Pick Locations: London

☆ Ted Pick Is a Math Whiz Among Math Whizzes. He’s the New Morgan Stanley CEO.
▼ + stars: | 2023-10-26 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

Persons: Morgan Stanley, Ted Pick, Pick Locations: London

Ted Pick, who leads Morgan Stanley’s investment-banking and trading operations, will succeed James Gorman as chief executive. Photo Illustration: Morgan Stanley, Angus Mordant/Bloomberg NewsMorgan Stanley said Wednesday that it named Ted Pick as its next chief executive to succeed longtime CEO James Gorman , ushering in a new era for the Wall Street powerhouse. Pick, who leads Morgan Stanley ’s investment-banking and trading operations, was one of three finalists selected as possible successors for Gorman, who said in May that he would step down from the CEO role he has held since 2010.

Persons: Ted Pick, Morgan Stanley’s, James Gorman, Morgan Stanley, Angus Mordant, Bloomberg News Morgan Stanley, Morgan Stanley ’, Gorman Organizations: Bloomberg News, Wall Street

At present, merchants pay large card issuers such as JPMorgan Chase and Bank of America 21 cents plus 0.05% of the transaction amount. Photo: Alyssa Schukar for The Wall Street JournalWASHINGTON—The Federal Reserve proposed lowering by about 30% the fees merchants pay to many banks when consumers shop with debit cards, setting off a fight with banks that oppose the changes. At present, merchants pay large card issuers such as JPMorgan Chase and Bank of America 21 cents plus 0.05% of the transaction amount, which is the level set by the Fed in 2011. The Fed can lower the cap if it determines the costs for processing debit-card payments are declining, but it had never previously done so.

Persons: Alyssa Schukar Organizations: JPMorgan Chase, Bank of America, Wall Street Journal WASHINGTON, Federal Reserve, Fed

☆ Morgan Stanley’s Earnings Fall 9% on Lower Investment-Banking Revenue
▼ + stars: | 2023-10-18 | by ( Charley Grant | Annamaria Andriotis | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/morgan-stanley-ms-q3-earnings-report-2023-f3ada31a

Persons: Dow Jones, morgan, stanley

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/regulation/fed-to-propose-lowering-debit-card-swipe-fees-d80c3dd3

Persons: Dow Jones

☆ Goldman Sachs, Pulling Back From Consumer Lending, Reports 33% Decline in Profit
▼ + stars: | 2023-10-17 | by ( Annamaria Andriotis | Charley Grant | ) www.wsj.com time to read: 1 min