Why Goldman Sachs Went From Investing For The Rich To Targeting Everyone
CNBC・2 minutes read
Goldman Sachs, a prominent investment bank with a rich history, has evolved from underwriting successful IPOs to facing legal challenges like accusations of theft and bribery. Despite controversies, the company expanded into consumer banking and fintech with the launch of Marcus, a digital bank offering personal loans and high yield savings accounts.
Insights
- Goldman Sachs, founded in 1869 by Marcus Goldman, evolved from valuing companies based on potential earnings to becoming a major player in underwriting IPOs and various financial sectors, transitioning to a public company in a significant IPO that raised $3.7 billion.
- Goldman Sachs demonstrated foresight by profiting from the 2008 financial crisis through strategic bets against the mortgage market, receiving investments from Warren Buffett during the crisis, but faced criticism and legal challenges for selling mortgage-backed securities to clients while betting against them, leading to public scrutiny and legal settlements.
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Recent questions
When was Goldman Sachs founded?
1869
Who reshaped the financial world by valuing companies based on potential earnings?
Henry Goldman
What significant role did Goldman Sachs play in underwriting successful IPOs?
United Cigar and Sears Roebuck
How did Goldman Sachs profit from the 2008 financial crisis?
Betting against the mortgage market
What led to ongoing investigations and legal issues for Goldman Sachs?
Involvement in bond deals in Malaysia for 1MDB
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