Goldman Sachs May Sell Unit Worth $29 Billion

On Monday, Goldman Sachs announced its deliberation over the potential divestment of a segment of its wealth management division. The esteemed New York-based bank disclosed its intention to explore options for its Personal Financial Management unit, an entity overseeing assets totaling $29 billion.

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The institution elaborated that this evaluation of alternatives is taking place in the context of strategic resource allocation and discernment of optimal investment prospects. A spokesperson for the company stated, "We are currently evaluating alternatives for that business as we determine where to invest our resources and where we see the greatest opportunity. We expect to find an outcome that benefits both our clients and our advisors."

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The focus of the Personal Financial Management unit lies in serving the mass affluent demographic through an internal network comprising registered investment advisers. In contrast, Goldman Sachs intends to maintain its concentration on ultra-high net worth wealth management, encompassing assets exceeding $1 trillion and catering to more than 16,000 clients.

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Furthermore, Goldman Sachs conveyed its intent to perpetuate its engagement with the third-party registered investment advisor market. This commitment is reflected in its plans to expand services through asset management, custody, structured notes, stock lending, as well as deposit-taking products and services.

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Amidst these developments, Goldman Sachs' shares have experienced a 5% decrease throughout the current year, in juxtaposition to the S&P 500 index's 14% ascent. Reports from the Financial Times on Monday suggest that while CEO David Solomon enjoys the support of the bank's board, an impending board meeting will address internal discord within the organization next month.

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