How Goldman Sachs is Changing

NYT: As Goldman Thrives, Some Say an Ethos Has Faded

Today, the traders — Mr. Blankfein’s camp — are firmly in power. While Goldman employs nearly 31,000 people, in business ranging from money management to traditional investment banking, the bank makes the bulk of its money from trading. Mr. van Praag said 50 percent of Goldman’s revenue came from fees that it charged for services like investment banking. The other half is generated by Goldman, using its capital for itself and its clients. While Mr. Blankfein’s traders are minting money, his investment bankers are being pressed to keep a closer eye on the bottom line. Bankers who once spent years cultivating corporate clients in hopes of one day landing lucrative work like advising on a big merger, are now being urged to squeeze more revenue from their customers.

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