Goldman Sachs finds itself in an unusual spot: last place in trading
After catching a tennis match at Wimbledon in July, Goldman Sachs Group Inc trading chief Pablo Salame paid a visit to the London offices of bond-fund giant Pacific Investment Management Co. His message to the Goldman client: “How can we do better?” according to people briefed on the July meeting. The next day, Goldman reported quarterly trading numbers that were the worst on Wall Street. Those followed a disappointing first quarter in which Goldman failed to catch an upswing in debt trading reported by rivals. A 40% decline in fixed-income activity, which includes bonds traded by Pimco and its ilk, left Goldman with first-half trading revenue that trailed its major banking rivals — a first since Goldman went public in 1999. The slump has rattled executives, sparking a charm offensive designed to showcase a more customer-friendly Goldman, focused on solving clients’ problems rather than steering them into trades that benefit the firm’s bottom line.
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