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.
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.
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.
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