Potential Shake Up at Goldman Sachs

Issue 48

12.07.20 - Goldman Sachs is considering plans for a new Florida hub of operations to house one of the key divisions within the company. Executives from Goldman recently have been scouting for office space in South Florida, speaking with several local officials to seek tax advantages for their potential move of Goldman’s asset management arm.

The bank’s continued success in remote operations during the COVID-19 pandemic has convinced members of the leadership within the company that they can move more roles out of the New York area to save money.

Goldman may decide against centering asset management in Florida regardless, but there is a growing list of firms seeking tax and lifestyle advantages and Goldman could be seeking to join that list. Goldman has also been accelerating its expansion in Dallas and could offer a reasonable alternative if it were to seek such changes.

The iconic financial firm’s asset-management division brings in roughly $8 billion a year and is a central piece of Goldman’s plans to expand its revenue streams. A decision to create a central location for the business in Florida would not only include back-office staff but also some investment professionals, and the shift would be carried out over a long period of time.

Source: Financial Times