The Corporate History Of Goldman Sachs

Recent questions

• What is the history of Goldman Sachs?

  Goldman Sachs, a renowned investment banking group, was founded in 1869 by Marcus Goldman, a German immigrant who started as a traveling salesman in Philadelphia. The company expanded over the years, partnering with Marcus' son-in-law Samuel in 1882 and later with Harry Goldman. Despite facing controversies and legal charges, Goldman Sachs thrived in the Roaring 20s, suffered losses during the Great Depression, and rebounded under the leadership of Sydney Weinberg and Gus Levy. The company evolved into an elite institution under John Whitehead's guidance, navigating challenges like insider trading scandals and regulatory scrutiny. Despite facing setbacks, Goldman Sachs continued to grow, going public in 1999 and becoming involved in mortgage-backed securities, contributing to the 2008 financial crisis.

• Who were the key figures in Goldman Sachs' history?

  Goldman Sachs has had several key figures throughout its history. Marcus Goldman, the founder, partnered with his son-in-law Samuel and later with Harry Goldman to establish the company. Sydney Weinberg, a former janitor's assistant, played a crucial role in the company's recovery and success, securing deals like convincing Ford Motors to go public. Gus Levy, known for block trading, became a prominent figure in the 1960s, although a misstep with Penn Central's bankruptcy led to lawsuits and financial losses. John Whitehead, as CEO, focused on client service and diligence, leading the company to significant financial success by the 1980s. Successive CEOs like Robert Rubin and Steven Fredman faced challenges but continued to drive the company forward.

• What were the controversies faced by Goldman Sachs?

  Goldman Sachs has faced various controversies throughout its history, including corruption, market manipulation, and insider trading. The company has been charged with violating money laundering laws and the Foreign Corrupt Practices Act. Despite these legal challenges, Goldman Sachs continued to thrive, making significant investments and achieving substantial returns. The company's involvement in underwriting IPOs, partnerships with other firms, and strategic trading strategies have also raised questions about its ethical practices and priorities.

• How did Goldman Sachs navigate financial crises?

  Goldman Sachs navigated financial crises like the Great Depression, the 1998 Russian debt default, and the 2008 financial crisis through strategic decisions and partnerships. During the Great Depression, the company faced financial losses and accusations of market manipulation but rebounded under the leadership of Sydney Weinberg. In 1998, facing losses due to Russia's debt default, Goldman Sachs dumped bonds to accelerate the downfall, but the Federal Reserve intervened to prevent a larger crisis. Following the 2008 financial crisis, the company went public, revealing significant profits and partner payouts, despite its involvement in mortgage-backed securities.

• How did Goldman Sachs evolve over time?

  Goldman Sachs evolved over time from a small banking and brokerage business established in 1869 to an elite institution by the 1980s. The company faced setbacks, controversies, and financial losses but continued to grow and thrive under various CEOs. Successive leaders focused on client service, diligence, and strategic partnerships, driving the company's success despite challenges like insider trading scandals and regulatory scrutiny. Goldman Sachs went public in 1999, revealing significant profits and partner payouts, and became involved in mortgage-backed securities, contributing to the 2008 financial crisis.