Goldman Sachs is overhauling its banking and trading units | Techy Kings

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New York
CNN Business

Goldman Sachs announced a major reorganization on Tuesday as the Wall Street powerhouse grappled with market volatility.

Goldman Sachs (GS) announced Tuesday morning that it is merging its trading and investment banking divisions into one unit. That will streamline its operations, reducing the number of major operating lines at Goldman Sachs ( GS ) from four to three.

The company also folded Marcus’ digital-focused consumer banking product into its wealth management business.

“Today, we enter the next phase of our growth, introducing a realignment of our business that will allow us to leverage One Goldman Sachs’ core operating model as we better serve our clients,” Goldman Sachs CEO David Solomon said in a statement. .

The announcement, which was previously reported by several financial news outlets Monday, was made official Tuesday morning along with Goldman Sachs’ latest quarterly earnings.

Goldman Sachs reported revenue of nearly $12 billion for the quarter and revenue of $3.1 billion.

Results beat forecasts, but revenue fell 12% from a year ago as the company was hit by a slowdown in global financial markets. The volume of transactions decreased, with fewer companies going public and announcing large mergers. Investment banking revenue plunged 57% compared to a year ago.

Still, shares of Goldman Sachs jumped nearly 3% on the news. The company fared better than rival Morgan Stanley ( MS ), which disappointed investors when it reported its latest results on Friday.

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