Goldman Sachs

Goldman Sachs was founded in 1869 by Marcus Goldman in New York City, originally operating as a commercial paper business. Marcus Goldman's son-in-law, Samuel Sachs, joined in 1882, giving the firm its name. The company pioneered commercial paper for wholesale merchants and later became a key underwriter for initial public offerings, most notably for Sears, Roebuck and Co. in 1906. Over the 20th century, it evolved from a partnership into a publicly traded corporation, becoming a dominant force in investment banking, trading, and asset management.

Today, Goldman Sachs operates through four main divisions. Investment Banking advises on mergers and acquisitions, underwrites debt and equity, and handles restructuring. Global Markets makes markets in fixed income, currencies, commodities, and equities, and provides prime brokerage for hedge funds. Asset & Wealth Management serves institutions and high-net-worth individuals with investment management, private wealth, and alternative investments. Platform Solutions includes consumer banking under the Marcus brand, transaction banking, and financial technology.

The firm has faced significant controversies. In the 1MDB scandal, it paid over $5.6 billion in penalties globally for its role in looting Malaysia's sovereign wealth fund; former partner Tim Leissner pleaded guilty. During the subprime mortgage crisis, it was criticized for selling mortgage-backed securities like the Abacus deal to clients while betting against them, settling SEC charges for $550 million. More recently, it settled a gender discrimination class-action suit in 2023 for $215 million. In 2024-2025, Goldman Sachs is scaling back its consumer banking business, winding down credit card partnerships with Apple and GM, and refocusing on its core strengths in investment banking, trading, and wealth management.[edit]