---
title: "Further contraction of consumer finance business! Goldman Sachs plans to \"cut\" one of the current CEO's achievements"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/95765095.md"
description: "Goldman Sachs plans to sell its online lending business, GreenSky, which it acquired in 2021. In addition, the company intends to divest its personal wealth management business, which manages approximately $29 billion in assets and serves clients with lower thresholds. These two businesses are important initiatives for the current CEO to transform Goldman Sachs into a comprehensive financial company targeting a broader consumer base. The new divestment plan is seen as a further abandonment of Goldman Sachs' recent progress in consumer finance, leading some analysts to believe that the company's transformation has not been successful."
datetime: "2023-08-21T18:50:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/95765095.md)
  - [en](https://longbridge.com/en/news/95765095.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/95765095.md)
---

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# Further contraction of consumer finance business! Goldman Sachs plans to "cut" one of the current CEO's achievements

Goldman Sachs, the Wall Street giant, is further shrinking its business to focus on its core areas.

On Monday, August 21, media reports stated that Goldman Sachs, currently facing difficulties, is considering selling part of its personal wealth management business targeting lower threshold clients, and refocusing its wealth management business on serving ultra-high-net-worth individuals.

Goldman Sachs stated on Monday:

> We are currently evaluating alternative solutions for our personal wealth management business to determine where to invest our resources and where we see the greatest opportunities.

This business includes Goldman Sachs' registered investment advisory business and manages approximately $29 billion in assets. Originally, this business originated from United Capital, an investment advisory firm based in California, which Goldman Sachs acquired for $750 million in 2019.

At that time, Goldman Sachs was attempting to transition from a prestigious investment bank to a comprehensive financial institution catering to a wider audience, with a particular focus on expanding its consumer finance business.

When asked about the possible sale of the personal wealth management business, Goldman Sachs stated:

> We hope to find an outcome that benefits both our clients and our team.

Although this is only a small part of Goldman Sachs' wealth business, it is an important symbol of CEO David Solomon's leadership in the bank's transformation towards consumer finance.

In fact, this is the second time in recent months that Goldman Sachs has sought to unwind acquisitions led by Solomon. This year, Goldman Sachs has begun the process of selling GreenSky, an online lending business it acquired in 2021.

Over the past three years, the consumer finance business has incurred losses of $3 billion, increasing the pressure on Solomon.

Market analysts believe that Solomon has taken note of the issues in the retail sector, as the business performance has been poor due to an increase in bad debts. Some analysts argue that Solomon's strategy of shifting away from the ultra-high-net-worth clients accumulated over decades towards the general public has not been successful.

Last year, Solomon restructured Goldman Sachs into three divisions, which also prepared for the reduction or even withdrawal from the consumer finance business.

Stephen Biggar, an analyst at Argus Research, stated:

> Goldman Sachs' latest move is part of the company's overall restructuring plan aimed at returning to its roots. The company has been unable to find a profitable and scalable path for its consumer finance business and its wealth management business targeting a broader audience.

Goldman Sachs' wealth business lags behind many competitors, including Morgan Stanley. CEO James Gorman has established a wealth management division through a series of acquisitions, bringing stable income to the company.

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