• Business
    • Economics
  • Politics
    • Military
  • Celebrity
  • Education
  • Humanities
    • Global Warming
    • Human Rights
    • Immigration
    • Jobs
  • Medical
  • Space
  • Tech
  • Sport
    • American Football
    • Golf
    • Motor racing
    • Soccer
    • Tennis
  • |
  • Support Us
Monday, May 22, 2023
  • Login
  • Register
THX News | Global News, Travel & Education.
NameCheap - Get a .com domain for just $5.98
  • USA
  • Canada
  • Central America
  • South America
  • Europe
  • Middle East
  • Africa
  • Asia
  • Oceania
No Result
View All Result
THX News | Global News, Travel & Education.
  • USA
  • Canada
  • Central America
  • South America
  • Europe
  • Middle East
  • Africa
  • Asia
  • Oceania
Contact Us
THX News | Global News, Travel & Education.
No Result
View All Result
Home Education Company Histories

How Goldman Sachs Rose to Prominence on Wall Street

Ivan Golden by Ivan Golden
6 months ago
in Company Histories
Reading Time: 6 mins read
0 0
A A
Do the Squid! Goldman Sachs alumni give the gang sign. Photo by Jurvetson. Flickr.

Do the Squid! Goldman Sachs alumni give the gang sign. Photo by Jurvetson. Flickr.

19
VIEWS
Share on FacebookShare on TwitterShare on Pinterest

Table of Contents

  • The Early Years: Goldman Sachs from the late 1800s.
    • World War I
  • Prominent Goldman Sachs Partners.
  • How Goldman Sachs Made Its Money.
  • How Goldman Sach’s has evolved.
  • Investment Banking.
  • Goldman Sachs’ Structure.
  • Noticable Recent Activity.
  • Recent Controversies: 1MDB scandal
  • In Conclusion.

 

The Goldman Sachs Group, Inc. is a multinational investment banking and securities firm that has been around for over 150 years. Founded by Marcus Goldman and Samuel Sachs, the company has had a prominent role on Wall Street and has been involved in some of the most notable financial scandals in history.

From helping to finance World War I to aid companies such as Coca-Cola and Walt Disney Productions, Goldman Sachs has played an important part in shaping today’s economy.

In this article, we’ll take a look at the history of Goldman Sachs and how it became one of the world’s largest investment banks.

 

Goldman Sachs, tallest building in NJ by vtravelled
Goldman Sachs, tallest building in NJ . Photo by vtravelled. Flickr

 

The Early Years: Goldman Sachs from the late 1800s.

Goldman Sachs was founded in New York City in 1869 by Marcus Goldman. In 1882, Goldman’s son-in-law Samuel Sachs joined the firm.

In 1885, Goldman took his son Henry and his son-in-law Ludwig Dreyfuss into the business and the firm adopted its present name, Goldman Sachs & Co.

Goldman Sachs was one of the few firms that survived the Panic of 1893 and went on to thrive in the early years of the 20th century.

 

World War I

During World War I, Goldman Sachs helped to finance the war effort by selling Liberty Bonds. In the 1920s, Goldman Sachs was a major player in the financing of several major corporations including Ford Motor Company, Radio Corporation of America (RCA), and Sears Roebuck.

The firm also played a role in the development of the motion picture industry by helping to finance several major studios including Warner Brothers and Metro-Goldwyn-Mayer (MGM).

Goldman Sachs continued to prosper in the years leading up to the Great Depression. However, like many other firms, Goldman Sachs was hard hit by the stock market crash of 1929 and the ensuing economic downturn.

The company was able to survive the crisis and emerged even stronger in the 1930s as it helped to finance some of America’s most important brands. The projects included; Coca-Cola, Walt Disney Productions, and Transcontinental Railroad.

Historically, Goldman Sach’s have been involved in some of the most important financial transactions in history and they have advised many governments, corporations, and wealthy individuals around the world.

 

Henry Paulson, Dealing with China. Photo by Michael Vadon. Flickr.
Henry Paulson, Dealing with China. Photo by Michael Vadon. Flickr.

 

Prominent Goldman Sachs Partners.

Goldman Sachs’s former partners are some of the most prominent people in finance. Some of the top leaders  include:

  1. Henry Paulson, United States Secretary of the Treasury.
  2. Jon Corzine, who became a US Senator and Governor of New Jersey.
  3. Gavyn Davies, a financial commentator and co-founder of Fulcrum Asset Management.
  4. Stefan Jentzsch, former CEO of Dresdner Kleinwort Wasserstein.
  5. Scott Mead, founding partner of Richmond Park Partners.
  6. Byron Trott, Warren Buffett’s favorite banker.
  7. Robert Rubin, former US Treasury Secretary, and Citigroup executive.

Goldman Sachs partners are highly respected for their knowledge and experience in the financial services industry.

 

Goldman Sachs in Fleet Street. Photo by Lars Plougmann. Flickr
Goldman Sachs in Fleet Street. Photo by Lars Plougmann. Flickr

 

How Goldman Sachs Made Its Money.

Goldman Sachs is one of the world’s most powerful investment banks. They are a leading global investment banking, securities, and investment management firm that provides a wide range of services to a substantial and diversified client base that includes corporations, financial institutions, governments, and high-net-worth individuals.

Goldman Sachs is headquartered in New York and maintains offices in all major financial centers around the world.

Goldman Sachs traces its roots to 1869 when Marcus Goldman started a small coin dealership in New York City. Goldman’s son-in-law Samuel Sachs joined the firm in 1882, and the name Goldman Sachs was adopted in 1885. Goldman Sachs began their transition from a private partnership to a public company in 1999.

 

José Manuel Barroso, Chairman Goldman Sachs International, Former President, European Commission. Photo by Horasis. Flickr.
José Manuel Barroso, Chairman Goldman Sachs International, Former President, European Commission. Photo by Horasis. Flickr.

 

How Goldman Sach’s has evolved.

In 2006, Goldman Sachs became a bank holding company subject to regulation by the Federal Reserve. Goldman Sachs is organized into four business segments: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management.

Goldman Sachs’ competitive strengths include its global reach, brand recognition, client base, and proven risk management abilities.

Goldman offers a wide array of services to its clients, including underwriting services, mergers and acquisitions advice, market-making activities in both cash equities and derivative instruments, financing solutions, and asset management products.

Goldman has built a leading franchise by responding to the needs of its clients with innovative products and services that address their most complex challenges.

Goldman’s focus on quality service and client satisfaction has helped the Firm develop long-term relationships with many of the world’s largest companies and financial institutions.

As a result of these relationships, Goldman typically ranks first or second among all investment banks globally in terms of revenues from underwriting equity offerings and advising on mergers and acquisitions. The company also maintains market-leading positions in other businesses such as financing & lending products and services.

 

Der Schatten des Investment-Bankers. Photo by Dierk Schaefer. Flickr
Der Schatten des Investment-Bankers. Photo by Dierk Schaefer. Flickr.

 

Investment Banking.

Goldman Sachs is one of the world’s largest investment banks, with operations in more than 30 countries. The firm’s main businesses are trading and investment banking. Goldman Sachs trades in a variety of financial instruments, including stocks, bonds, commodities, and currencies.

The firm also provides investment banking services, such as mergers and acquisitions advisory, equity and debt capital markets underwriting, and lending. Goldman Sachs is headquartered in New York City.

 

Ambassador Roemer meets Goldman Sachs Chairman for SE Asia by U.S. Embassy New Delhi
Ambassador Roemer meets Goldman Sachs Chairman for SE Asia. Photo by U.S. Embassy New Delhi. Flickr.

 

Goldman Sachs’ Structure.

Goldman Sachs’ trading business is divided into four main areas: fixed income, equities, currencies, and commodities. The fixed-income division trades a variety of debt instruments, including government bonds, corporate bonds, and mortgage-backed securities.

The equities division trades stocks on major stock exchanges around the world. The currency division trades currencies through spot and forward contracts.

The commodity division trades a variety of commodities, including metals, energy products, and agricultural products. Goldman Sachs’ trading business is conducted through its global network of trading desks.

Goldman Sachs’ investment banking business offers a broad range of services to its clients. These services include advising on mergers and acquisitions, underwriting equity and debt offerings, and providing lending and other financial services.

 

CEOs of AT&T and Time Warner on their $85B mega merger. Photo by Jurvetson. Flickr
CEOs of AT&T and Time Warner on their $85B mega merger. Photo by Jurvetson. Flickr.

 

Noticable Recent Activity.

Goldman Sachs has advised on some of the largest mergers and acquisitions in history. Notable deals that Goldman Sachs has advised on include AT&T’s $85 billion acquisition of Time Warner and Kraft Heinz’s $50 billion merger with Unilever.

Goldman Sachs has also been involved in some of the largest initial public offerings (IPOs) ever completed.

Recent IPOs that Goldman Sachs has advised on include Snapchat’s$3.4 billion IPO and Spotify’s $26 billion direct listing. Goldman Sachs is one of the most prestigious investment banks in the world.

The company has advised on some of the largest transactions in history and has been involved in some of the most successful IPOs ever completed.

 

Protesters outside Goldman Sachs by americans4financialreform
Protesters outside Goldman Sachs. Photo by americans 4 financial reform. Flickr.

 

Recent Controversies: 1MDB scandal

The 1MDB scandal has been making headlines in recent months, and Goldman Sachs has found itself at the center of the controversy. The Malaysian development fund was set up in 2009 with the intention of promoting economic development in the country.

However, it soon became embroiled in allegations of corruption and mismanagement. Goldman Sachs provided loans to 1MDB totaling $6.5 billion and is accused of misleading investors about the use of the funds.

The bank has denied any wrongdoing, but faces mounting pressure from lawmakers and prosecutors. The scandal has already claimed the scalps of several senior Goldman executives, and it remains to be seen how much further it will spread.

 

In Conclusion.

Goldman Sachs is one of the most prestigious investment banks in the world. The firm has advised on some of the largest transactions in history and has been involved in some of the most successful IPOs ever completed.

However, Goldman Sachs is also embroiled in the 1MDB scandal, which has already claimed several senior executives’ scalps. It remains to be seen how much further the scandal will spread.

 

Sources: THX News, Wikipedia & HitC.

Tags: Goldman SachsGoldman Sachs GroupGoldman Sachs PartnersMarcus GoldmanWorld war I
Ivan Golden

Ivan Golden

Ivan Golden is a global citizen, having lived in locations across the US, Philippines and UK. His career has been marked by success - starting as a Tennis Pro before he turned his talents to bookselling and fine art dealing.

Married with six children, he's passionate about providing them opportunities for learning through his news, travel and education platform THX News; designed to restore faith in journalism via objective reporting, careful checking of facts, and real reporting.

Related Posts

Company Histories

ExxonMobil: The Global Oil and Gas Giant

May 10, 2023
Bejing banking district. Photo by Road Trip with Raj. Unsplash.
Company Histories

China Construction Bank: From Its Founding to Modern Times

May 1, 2023
Toyota Chairman Akio Toyoda. Photo by Bertel Schmitt. Wikimedia.
Company Histories

Brief History of Toyota Motor Corporation

May 1, 2023
BNP Paribas in Canada. Photo by Can Pac Swire. Flickr.
Company Histories

BNP Paribas: A Global Banking Giant in North America

March 17, 2023
Morgan Stanley Headquarters signage. Photo by Alex E. Proimos. Flickr.
Company Histories

Uncovering the Story of Morgan Stanley

March 6, 2023
John C. Dugan, Chairman of Citygroup. Photo by Brookings Instution. Flickr.
Company Histories

The Early History of Citibank – Now Citigroup

March 4, 2023

History

The Surprising Impact of Hernando Corte’s Conquests

by Tuhin Hossain
January 21, 2023
0
Hernan Cortes. Photo By José Lira. Flickr.

  Hernando Corte's conquest of the Aztec Empire in 1521 is considered one of the most significant events in world...

Read more

Discovering Chairman Mao: Unshackling the Chinese People

by Ivan Golden
April 6, 2023
0
30 Dec 1972 - Chairman Mao Meets Foreign Minister Nguyen Thi Binh. Peking, China by Manhhai. Flickr.

  Introduction Chairman Mao Zedong was a revolutionary leader who changed the course of Chinese history. He led the Chinese...

Read more
AbeBooks.com. Thousands of booksellers - millions of books.

Asian Travel

Advisory: Parts of Camanava, Manila, Curzon City will be Waterless May 22-27

by Ivan Golden
May 20, 2023
0
Barangays Maynilad Water Services Marcos Road Radial Road 48 Tondo, Manila. Wikimedia.

  Water service interruptions will be experienced in several parts of Caloocan, Malabon, Navotas, Valenzuela, Manila and Quezon City from...

Read more

DBM Releases Funds to Pay for approx 5k New Classrooms

by Ivan Golden
May 17, 2023
0
New Valentine Building. Photo by Ryn910. Wikimedia.

  Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman approved on 15 May 2023 the release of funds...

Read more

Middle East News

Agreements Reached in Inaugural Dialogue between UK and UAE

by Ivan Golden
May 17, 2023
0
UK-UAE Taskforce. Photo by Foreign, Commonwealth and Development Office. Flickr.

  The Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom and Northern Ireland, the Rt...

Read more

Sudan Peace Talks Have Started in Jeddah

by Ivan Golden
May 6, 2023
0
Jeddah meeting. Photo by IMO.UN. Flickr.

Official Joint Statement by the US and Saudi Governments The Kingdom of Saudi Arabia and the United States welcome the...

Read more
Amphy
THX News | Free News, Travel & Education

• THX News is a global news, travel & education website providing free access to information.
• Includes news stories, travel articles and educational resources.
• Committed to accurate and reliable information.

Article Search

No Result
View All Result

Categories

Archives

  • About
  • Terms of Use
  • Privacy Policy
  • Contact
  • RSS

© 2023 THX News LLC.

No Result
View All Result
  • News
    • Business
    • Celebrity
    • Economics
    • Global Warming
    • Human Rights
    • Medical
    • Military
    • Politics
    • Space & Exploration
    • Technology
    • Africa
    • Asia
    • Canada
    • Central America
    • Europe
    • Middle East
    • Oceania
    • South America
    • USA
  • Travel
    • Africa
    • Asia
    • Canada
    • Central America
    • Europe
    • Middle East
    • Oceania
    • South America
    • USA
  • Education
    • Books & Authors
    • History
      • Wild West Celebrities
      • Company Histories
    • Parenting
    • Science
    • Technology
    • US Universities
    • More
  • About Us
  • Help
  • Contact
  • Support Us
  • Login
  • Sign Up

© 2023 THX News LLC.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.