Summary:
- Goldman Sachs is exploring the possibility of selling its personal financial management business, acquired in 2019 for $750 million.
- Despite a growth in assets, the business has not achieved the expected expansion in its wealth services.
- The bank has faced challenges with other recent acquisitions, such as GreenSky, which incurred a $500 million goodwill impairment charge.
- CEO David Solomon retains board support amidst ongoing changes at Goldman Sachs.
Goldman Sachs is reportedly considering the sale of its personal financial management business, marking a shift away from its consumer strategy. The business, originally known as United Capital, was acquired in 2019 for $750 million, and despite a growth in assets from $25 billion to $29 billion, Goldman Sachs is facing challenges in expanding its wealth services.
The financial institution's strategy was to bring corporate executives and their deputies closer to the wealth business, but the expected growth did not materialize as planned. This move comes in the wake of other financial maneuvers, including talks to sell GreenSky, a company acquired for $2.2 billion in 2021, which led to a $500 million goodwill impairment charge in the recent quarter.
As Goldman Sachs navigates these strategic shifts, CEO David Solomon has retained the board's support amidst changes and challenges. The upcoming quarter will be closely observed as the company adapts to new directions.