The Remixed Version of Wall Street

A new strategy for Goldman Sachs

Goldman Sachs boss David Solomon is a DJ in his spare time. In 2018, he produced a remixed version of the Fleetwood Mac song “Don’t Stop.” Really, this American banker is unstoppable himself, working tirelessly to transform the company that has been disparaged as the “leech,” a symbol of the excesses of the finance industry in the early 2000s.

Solomon is thus the remixed version of Wall Street in contrast to the old one personified by former Goldman Sachs CEO Lloyd Blankfein, who arrogantly declared that he was “doing God’s work.” That was all he claimed for himself.

Along with other CEOs of major firms, last summer Solomon signed the declaration by the employers’ organization Business Roundtable that overturned traditional American capitalism by stating that it is no longer the main object of business to maximize profits for shareholders. These must henceforth be put on the same footing with other “stakeholders.” In short, business must also concern itself with the environment, its clients and workers, etc. This is altogether in the spirit of the times.

Goldman Sachs’ corporate culture is thus changing, but sometimes in a mostly cosmetic way. For example, there is the subtle policy of declining to manage the initial public offerings of companies whose boards do not include a woman. Strangely, this quest for diversity is only applied to America and Europe, not Asia.

Above all, Goldman Sachs is trying to diversify from its dependence on trading and speculation. It also seeks to appear less secretive; for example, holding its very first “investor day” last Wednesday in New York. The event was highly welcomed.

So, is greed dead? Let’s not jump to conclusions. Recently, The Wall Street Journal let it be known that the current management team’s objective is to double Goldman Sachs’ share prices, which are falling. Solomon might need to polish his remix.