Goldman Sachs

The Goldman Sachs Group, Inc. is a multinational banking and financial services company headquartered in New York City.
==History==
Goldman Sachs was founded in New York City in 1869 by Marcus Goldman. In 1882, Goldman's son-in-law, Samuel Sachs, joined the company. The company pioneered the use of commercial paper for entrepreneurs and joined the New York Stock Exchange. By 1898, the firm's net worth stood at $1.6 million.
Goldman entered the initial public offering market in 1906 when it took Sears, Roebuck, and Company public. The deal was facilitated by Goldman's personal friendship with Julius Rosenwald, an owner of Sears. Other IPOs followed, including F. W. Woolworth and Continental Can. In 1912, Henry S. Bowers became the first non-member of the founding family to become a partner of the company and share in its profits. In 1917, Henry Goldman resigned, but no specific reason was specified. The Sachs family gained full control of the company until Waddill Catchings joined the company in 1918. By 1928, Catchings was the Goldman partner with the single largest stake in the company.
In 1930, the company voted Catchings out, and Sidney Weinberg assumed the role of senior partner. Under Weinberg's leadership, the company was the lead advisor on the Ford Motor Company's IPO in 1956, a major coup on Wall Street at the time. The company evenly started an investment research division and a municipal bond department, and it became an early innovator in risk arbitrage. Around the same time, Gus Levy joined the company as a securities trader, where two powers fought for supremacy, one from banking and one from securities trading. Levy was a pioneer in block trading and the company established this trend under his guidance. Due to Weinberg's heavy influence, the company formed a banking division in 1956 in an attempt to shift focus off Weinberg.
In 1957, the company's headquarters were relocated to 20 Broad Street, New York City. In 1969, Levy took over Weinberg's role as senior partner and built the company's trading franchise once again. At the same time, partners reinvested nearly all of their earnings in the firm. Weinberg died on July 23, 1969. In 1970, the company was under crisis, especially when the Penn Central Transportation Company went bankrupt with over $80 million in commercial paper outstanding, most of it issued through Goldman Sachs. The bankruptcy turned out to be serious enough, and the resulting lawsuits, notably by the SEC, endangered the partnership capital, life, and reputation of the company.
With Stanley R. Miller taking over as the next senior partner, Goldman Sachs opened its first international office in London in 1970 and created a Private Wealth Management division along with a fixed income division in 1972. In 1976, John L. Weinberg became the next senior partner, while John C. Whitehead stepped into the ring as the assistant senior partner.
On November 16, 1981, Goldman Sachs acquired J. Aron & Company, a commodities trading firm which merged with the Fixed Income division to become known as Fixed Income, Currencies, and Commodities. Lloyd Blankfein joined the company as the next CEO after the acquisition. In 1985, the company underwrote the public offering of the real estate investment trust that owned Rockefeller Center. With the Soviet Union steadily dissolving, Goldman Sachs also became involved in facilitating the global privatization movement by advising companies that were spinning off from their parent governments.
In 1986, the company formed its own Asset Management, which managed the majority of its mutual funds and hedge funds. In the same year, Goldman Sachs also underwrote the IPO of Microsoft, advised General Electric on its acquisition of RCA, joined the London and Tokyo stock exchanges, and became the first United States bank to rank in the top 10 of mergers and acquisitions in the United Kingdom. Goldman Sachs became the first bank to distribute its investment research electronically and created the first public offering of original issue deep-discount bond.
In 1990, Robert Rubin and Stephen Friedman assumed the senior partnership, having plans to to focus on globalization of the company to strengthen the merger, acquisition, and trading business lines. The company introduced paperless trading to the New York Stock Exchange and lead-managed the first-ever global debt offering by a U.S. corporation. In 1994, Goldman Sachs opened its first location in China. Rubin and Friedman eventually resigned, with Jon Corzine becoming the company's next CEO.
In 1999, Goldman Sachs acquired Hull Trading Company for $531 million. In 2000, Goldman Sachs purchased Spear, Leeds, and Kellogg, one of the largest specialist firms on the New York Stock Exchange, for $6.3 billion. In 2003, the company took a 45% stake in a joint venture with JBWere, the Australian investment bank. The company also acquired The Ayco Company L.P., a fee-based financial counseling service. In 2005, Goldman Sachs began opening international locations in Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, Turkey, South Korea, and Vietnam.
By 2007, a financial crisis struck. Goldman Sachs received a $10 billion investment from the United States Department of the Treasury as part of the Troubled Asset Relief Program, a financial bailout created by the Emergency Economic Stabilization Act of 2008. The investment was made in November 2008 and was repaid with interest in June 2009. On September 21, 2008, Goldman Sachs and Morgan Stanley, the last two major investment banks in the United States, both confirmed that they would become traditional bank holding companies. The Federal Reserve's approval of their bid to become banks ended the business model of an independent securities firm, 75 years after Congress separated them from deposit-taking lenders, and capped weeks of chaos that sent Lehman Brothers into bankruptcy and led to the rushed sale of Merrill Lynch to Bank of America. On September 23, 2008, Berkshire Hathaway agreed to purchase $5 billion in Goldman Sachs' preferred stock, and also received warrants to buy another $5 billion in Goldman's common stock within five years. The company also raised $5 billion via a public offering of shares at $123 per share. Goldman also received a $10 billion preferred stock investment from the U.S. Treasury in October 2008, as part of the Troubled Asset Relief Program.
Andrew Cuomo, a New York Attorney General, then later the governor of the state of New York, questioned Goldman's decision to pay 953 employees bonuses of at least $1 million each after it received TARP funds in 2008. Around the same time, Lloyd Blankfein and six other senior executives opted to forgo the bonuses. In June 2009, Goldman Sachs repaid the U.S. Treasury's TARP investment, with 23% interest. On March 18, 2011, Goldman Sachs received Federal Reserve approval to buy back Berkshire's preferred stock in Goldman. In December 2009, Goldman announced that its top 30 executives would be paid year-end bonuses in restricted stock that they cannot sell for five years, with clawback provisions.
In September 2013, the company's Asset Management announced it had entered into an agreement with Deutsche Asset & Wealth Management to acquire its stable value business, with total assets under supervision of $21.6 billion. Around the same time, Goldman led a $17 billion bond offering by Apple Inc., which became the largest corporate-bond deal in history. In addition Goldman Sachs underwrote the $2.913 billion Grand Parkway System Toll Revenue Bond offering for the Houston, Texas area, one of the fastest-growing areas in the United States. The bond will be repaid from toll revenue. In June 2013, Goldman Sachs purchased loan portfolio from Brisbane-based Suncorp Group, one of Australia's largest banks and insurance companies. The A$1.6 billion face amount loan portfolio was purchased for A$960 million.
In August 2015, Goldman Sachs agreed to acquire General Electric's GE Capital Bank on-line deposit platform, including US$8-billion of on-line deposits and another US$8-billion of brokered certificates of deposit.
In April 2016, Goldman Sachs launched GS Bank, a direct bank. In October 2016, Goldman Sachs started offering no-fee unsecured personal loans under the brand Marcus by Goldman Sachs. In March 2016, Goldman Sachs agreed to acquire financial technology startup Honest Dollar, a digital retirement savings tool founded by American entrepreneur Whurley, focused on helping small-business employees and self-employed workers obtain affordable retirement plans. In May 2017, Goldman Sachs purchased $2.8 billion of PDVSA 2022 bonds from the Central Bank of Venezuela during the 2017 Venezuelan protests.
In 2018, Goldman Sachs acquired Clarity Money, a personal finance startup. Around the same time, the company acquired Boyd Corporation from Genstar Capital for $3 billion.
In 2019, Goldman Sachs opened its third-largest global office, in Bangalore, Karnataka, India. Also, the company pledged to give $750 billion to climate transition projects and to stop financing for oil exploration in the Arctic and for some projects related to coal.
In June 2020, Goldman Sachs introduced a new corporate typeface, Goldman Sans, and made it freely available. After Internet users discovered that the terms of the license prohibited the disparagement of Goldman Sachs, the bank was much mocked and disparaged in its own font, until it eventually changed the license to the standard SIL Open Font License.
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