Classic case of rich company, poor stock… Over the last 3 years, Goldman Sachs’ shares have barely budged. Meanwhile, its big bank buddies pop bottles — JPMorgan and Bank of America stocks both rose over 50%. So here’s Goldman’s self-diagnosis: severely un-transparent corporate reporting structure. Now it’s changing:
This is how bad it got… Want to know how Goldman’s Apple Card did last quarter? Good luck. Goldman's consumer banking performance was buried in its “Investing & Lending” division, along with a bunch of big loans and venture investments. Like a box of chocolates, investors couldn’t tell what was inside Goldman behind all that corporate structure scar tissue.
Investors reward transparency… and that’s why Goldman’s transparent-izing itself. This new corporate structure could reveal to investors critical Goldman insights — like how’s its 3-year-old, millennial-obsessed, digital consumer bank Marcus is actually doing. Investors are more down to reward Goldman stock if they can actually see what’s in it.