Sachs appeal (Goldman Sachs Group)

Sachs appeal (Goldman Sachs Group)

WeinbergN. Forbes, 29 January 2007, Vol. 179 No. 2, Start page: 56, No of pages: 5

Purpose – Investigates the risky business operations at Goldman Sachs. Design/methodology/approach – Profiles Lloyd Blankfein, the new chief executive of Goldman Sachs Group (the world’s most powerful investment bank); provides biographical details; traces his history at Goldman Sachs. Describes how he has developed Goldman’s trading arm and how he used the global slump to expand abroad; identifies some of Goldman Sachs major clients. Highlights the firm’s increasing reliance on income from trading to maintain profit growth, making it a risky venture for investors. Draws attention to Goldman Sachs operations; puts forward how in the firm’s leveraged buyout business (the biggest in the world), Goldman acts as both investor and adviser, opening it up to accusations of conflict of interest. Refers to the risks that Goldman’s faces and how they could result in financial meltdown for the company; outlines how the company is determined to stay ahead of rivals by “trying daring and innovative approaches”; outlines the new futures product that it is developing. Originality/value – Looks at the strategy being pursued by Lloyd Blankfein, Goldman Sachs new chief executive.ISSN: 0015-6914

Keywords: Banking, Business performance, Corporate strategy, Goldman Sachs, Investments