Goldman Sachs Group Inc. is shaking up the leadership of its powerful trading arm, which was once the envy of Wall Street but has struggled in recent years.
Pablo Salame and Isabelle Ealet, two of three executives who oversee the division, will leave the firm GS, +0.41%[1] next month, according to an internal memo reviewed by The Wall Street Journal.
Monday’s shake-up leaves Ashok Varadhan as the sole head of the division and could tee up an effective split of the firm’s fixed-income and equities arms, an idea that has gotten some discussion among executives, according to people familiar with the matter.
The two executives couldn’t be reached for comment.
Read: Goldman joins the ‘cash is king’ bandwagon amid market uncertainty[2]
Goldman’s securities division employs thousands of traders, who manage positions in assets ranging from blue-chip stocks to global currencies, and salespeople, who pitch the firm’s products and investment ideas to clients.
The business has struggled to regain its footing since the financial crisis, leading Goldman to branch out into other areas such as consumer banking and asset management. New regulations have crimped trading profits and a long period of market calm has sapped demand for the complex products that are Goldman’s specialty.
An expanded version of this report appears on WSJ.com[3].
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References
- ^ GS, +0.41% (www.marketwatch.com)
- ^ Goldman joins the ‘cash is king’ bandwagon amid market uncertainty (www.marketwatch.com)
- ^ An expanded version of this report appears on WSJ.com (www.wsj.com)
- ^ Tesla executives step away, adding to auto maker’s challenges (www.wsj.com)
- ^ Tesla CEO Musk says company is ‘flattening management structure’ in reorganization (www.wsj.com)