150 Years Of History Or Goldman Sachs: The Bank That Leads The World

If you are even slightly interested in investments or the IPO market, you have probably heard about the existence of such a giant as Goldman Sachs. It is one of the largest financial conglomerates in the world. The main activities of the Goldman Sachs group are:

  • securities trading;
  • investment banking;
  • investment management, which is focused on institutional (large) investors.

In this article, we will talk about the history of this bank, its role in the global economy, and also touch its “dark” side a little.

1. A bit of history

The history of one of the largest banks in the world originates since 1869. Its founder was Marcus Goldman, who started his own business and traded the IOUs (debts deals) of customers at jewelry stores in New York. Thirteen years after the foundation, Goldman got a partner, his son-in-law, Samuel Sachs. After that, the company began to be called M. Goldman & Sachs. At that time, the firm’s annual turnover had already reached $30 million. At that time, the bank was not only selling IOUs but had already begun to manage the finance of its clients.

In 1904, the actual management of the company passed into the hands of Sachs. At this time, the bank received most of its own dividends from trading on the stock exchange. Over time, the IPO market begins to play a key role in the Goldman Sachs business.

One of the main events in the history of the bank was the initial public offering of its own shares, which took place in 1999. It should be noted that only 12% of the Goldman Sachs shares went directly into the open sale. Everything else was distributed in the following proportions:

  • 48% owned by partners;
  • 22% owned by employees;
  • 18% are in the portfolios of long-term large investors.

In 2013, Goldman Sachs officially transformed into a financial conglomerate and was included in the Dow Jones Industrial Average.

2. Attitude towards employees

Some facts about Goldman Sachs staff:

  • the company employs the best graduates of advanced business schools;
  • there is a special program, which is available for employees. It is focused on attention concentration through meditation and yoga;
  • GS employees are always in the process of self-development, only the best of the best can qualify for high positions;
  • pay cut in a company does not begin with ordinary employees, but with partners.

3. “Money and power. How Goldman Sachs Came to Rule the World”

Bank Goldman Sachs is one of the most influential and talked about financial companies in the world. This year GS celebrates its next anniversary, it is 150 years old. Throughout this time, the company proves to the world that it is the best in the business. At GS, there are top financiers who always follow the basic principle of the company – “The interests of clients are above all”.

But is everything as good as it may seem at first glance? It turns out that Goldman Sachs has a reverse, not public and rather dark side. The author of the book: “How Goldman Sachs Came to Rule the World”, claims that the company employs “soulless robots”, whose main goal is to make money. And in order to achieve it, they can go for various kinds of tricks (illegal deals, neglect of the interests of customers, etc.). This is not known to a wide range of people, as the “reputation risk management Department” successfully operates within the company. This unit is headed by former CIA employees.

Why should you believe this book? The fact is that the author refers to hundreds and even thousands of pages of official documents: materials from court proceedings, SEC reports (The U.S. Securities and Exchange Commission), etc. Also, the book includes a huge number of detailed interviews with bank employees, customers, SEC employees, competitors, etc. This is a great job that cannot be described in a single article. If you want to know more about how Goldman Sachs has become such a large company, we highly recommend reading this book.

4. Goldman Sachs and cryptocurrencies

GS is one of the most powerful financial companies in the world. Last year, the bank’s management was considering the possibility of opening a unit that would provide cryptocurrency investment services to big investors. But later, they revised their decision and said that in the near future they are not going to do that. What it was – a change in the company’s course or skillful manipulation, nobody knows for sure.

5. Conclusion

This financial conglomerate is one of the most powerful in the world. GS has been successfully operating for 150 years and during this time has proved its reliability and ability to earn money for its customers, at almost any price. After the release of the book: “Money and Power: How Goldman Sachs Came to Rule the World”, everyone learned about its dark side.

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