Analysis Of The Goldman Sachs Group

1911 Words4 Pages

About the Organization
The Goldman Sachs Group, Inc. is an American multinational investment banking firm. It is considered to one of the premier investment banks in the world. Some of the business areas where it engages itself are :
• Investment management
• Securities
• Investment banking
• Various other financial services.
By and large, the firm's major activities includes providing Mergers and Acquisitions advices, asset management, underwriting services and prime brokerage to its clients which can be either of the corporations, governments or individuals. Apart from this, they are also involved in market making and private equity deals, and is a primary dealer in the United States Treasury security market.

1869 : Goldman Sachs …show more content…

1920 : Firm moved from 60 Wall Street to $1.5 million 12-storey premises on 30-32 Pine Street.[7]
1956 : Became the lead advisor on the Ford Motor Company's IPO, which was considered a major coup on Wall Street at that time.
During the 1970s, the firm went through its expansion phase in a number of ways.
For e.g. In 1970,It opened its first international office in London thereby creating a private wealth division along with a fixed income division in 1972. In 1974, it came up with the "white knight" strategy during its attempts to defend Electric Storage Battery against a hostile takeover bid from its rival Morgan Stanley and International Nickel. As a result of this, their name got boosted up as an investment advisor as it pledged to not participate in any hostile takeovers anymore.
1981 : Acquired J. Aron & Company, a commodities trading firm. As a result of this merger, Lloyd Blankfein, the current CEO of Goldman, joined the firm.
1986 : Created Goldman Sachs Asset Management, which manages the majority of its mutual funds and hedge funds even today.
1994 : Goldman Sachs Commodity Index (GSCI) was launched and they also opened an office in …show more content…

1 Post the 2007–2012 global financial crisis, few criticized them to have it mislead its investors and profited from the collapse of the mortgage market. Matt Taibbi went on to name it as a "great vampire squid" sucking money instead of blood. However, Goldman Sachs denied the charges saying that the customers were appraised of those bets and those bets were used only to hedge against losses.
2 There were also charges of various misdeeds as well as decline in ethical standards. They have been accused of working with dictatorial regimes, intimate relationships with the US federal government, via a "revolving door" of former employees and driving up prices of commodities through futures speculation.
3 In 2000, the founders of Dragon, Jim and Janet Baker, filed a lawsuit against Goldman Sachs, alleging that the firm did not warn Dragon or the Bakers of the accounting problems of the acquirer, which led to the loss of around $580 million, which was paid entirely in the form of the acquirer's stock.
4 In 2010, they were accused of involvement in the European sovereign debt crisis.
5 In 1986, David Brown was charged with the act of passing inside information to Ivan Boesky on a takeover

More about Analysis Of The Goldman Sachs Group

Open Document