Goldman Sachs has played a pivotal role in global finance.© Igor Golovniov/SOPA Images—LightRocket/Getty Images formerly:Goldman, Sachs & Co.Founded in 1869, Goldman Sachs Group, Inc. has grown from a small New York City brokerage into one of the most influential investment banks in the world. Over the decades, it has played a central role in major financial markets, advising on mergers, underwriting securities, and managing assets for clientele worldwide. It operates in more than 30 countries and employs about 43,000 workers. Despite its size, Goldman Sachs remains known for highly personalized service, and its roster of influential alumni and landmark deals has cemented its reputation as a financial powerhouse.

　　Inside Goldman Sachs’ corporate structureGoldman Sachs’ corporate structure has three main divisions: global banking and markets, asset and wealth management, and platform solutions.

　　The global banking and markets division consists of two branches: investment banking and fixed income, currencies, and commodities (FICC). Investment banking is divided into two main areas: mergers and acquisitions, which involves advising on corporate transactions, and financing, where the company helps clients raise capital by issuing stocks and bonds. FICC focuses on market making, providing liquidity, and executing trades in bonds, currencies, and commodities.

　　The asset management branch of this division includes departments devoted to equity, fixed income, and strategies to manage cash flow and short-term investments, including government instruments. It also includes alternative investments such as private equity, as well as multi-asset investments, and outsourcing management to third-party funds and external asset managers.

　　The wealth management arm focuses on private wealth management, private banking, and lending; the Ayco program, which offers corporate-sponsored financial planning for executives; and Marcus, a provider of digital banking services for retail consumers.

　　Transaction banking provides digital tools, including electronic payments, foreign exchange, and liquidity needs for corporate treasurers and payment professionals.Enterprise partnerships integrates products, such as credit cards and high-yield savings accounts, into large companies’ financial services. An example is Apple Inc.’s Apple Card.Tracing Goldman Sachs’ evolution since 1869Goldman Sachs traces its roots to 1869 when German immigrant Marcus Goldman set up a one-room office in Lower Manhattan. During an era when bank credit was tight and costly, Goldman provided local merchants an alternative by purchasing their promissory notes and reselling them to New York’s commercial banks. The practice laid the groundwork for the modern commercial paper market.

　　In 1882, Goldman brought his son-in-law, Samuel Sachs, into the business. Three years later, Goldman’s son, Henry Goldman, also joined the firm, which in 1888 was renamed Goldman, Sachs & Co. By 1896, the company joined the New York Stock Exchange (NYSE) as a trading member and soon established ties with European financial firms. From 1900 to 1920, Goldman Sachs grew to include offices in key cities such as Boston, Chicago, San Francisco, Philadelphia, and St. Louis.

　　Goldman Sachs helped advance fundamental analysis by introducing the practice of valuing stocks based on earnings and goodwill rather than relying solely on physical assets. A key component of this approach was the price-to-earnings (P/E) ratio, which Goldman played a significant role in popularizing. Despite the economic upheavals of the Great Depression and two world wars, the firm continued to diversify its financial services and maintain its influence in the industry.

　　Began providing investment banking services in the early 1900sExpanded into equity sales and trading starting in 1945Developed its securities underwriting business in the 1950sBuilt one of the first mergers and acquisitions units in the 1960sAdded real estate services in 1969 and fixed income in 1972Became active with commodities trading in the 1980sEstablished Goldman Sachs Asset Management in 1988 to provide investment and advisory services to institutions and individuals, beyond its traditional investment banking and trading operationsGoldman Sachs continued to grow geographically, too, adding offices worldwide. It became a publicly traded company in 1999, debuting on the NYSE under the ticker GS.

　　In response to the 2007–08 financial crisis, Goldman Sachs converted to a bank holding company from an investment bank. The change made Goldman eligible for the federal government’s Troubled Asset Relief Program (TARP) and other emergency loan programs established by the Federal Reserve.

　　At about the same time, Goldman Sachs launched two philanthropic initiatives—10,000 Women in 2008 and 10,000 Small Businesses in 2009—to support women entrepreneurs and small business owners globally.

　　Marquee in 2014 to improve trading, data security, and big data managementMarcus in 2016, offering fixed-rate, no-fee personal loansApple Card, launched in 2019 and developed in partnership with Apple, enabled users to view transactions, track spending, and make payments directly from their iPhones through the Apple Wallet app Goldman Sachs has increased its focus on sustainability, forming the sustainable finance group in 2019. The company also launched the Goldman Sachs Fund for Racial Equity in 2020 and introduced the $10 billion One Million Black Women initiative in 2021.

　　Key acquisitions that fueled Goldman Sachs’ growthSeveral strategic acquisitions have driven Goldman Sachs’ expansion. Some notable purchases include:

　　J. Aron & Company, a commodities trading firm, in 1981Spears, Benzak, Salomon & Farrell, an asset manager, in 1981Hull Group, an electronic trading company, in 1999Ayco Company, a firm specializing in financial planning and wealth management, in 2003Deutsche Asset & Wealth Management’s stable value business, in 2013Clarity Money, a personal finance management app, in 2018United Capital Financial Partners, which offers financial planning and investment management services, in 2019GreenSky, a technology company that connects consumers with lenders for home improvement loans, in 2021NN Investment Partners, a European asset manager, in 2022NextCapital, a provider of personalized retirement planning and portfolio management tools, in 2022Legal and regulatory challenges at Goldman SachsOver the years, Goldman Sachs has faced scrutiny for its involvement in several high-profile scandals. These incidents highlight the challenges of maintaining trust and compliance in an increasingly complex financial system. Some of the company’s most notable legal and regulatory challenges include:

　　2010 SEC settlement. Goldman paid $550 million to settle charges from the Securities and Exchange Commission (SEC). The company was accused of misleading investors in the sale of collateralized debt obligations tied to subprime mortgages, while simultaneously profiting by betting against these same products.1MDB scandal. In 2020, Goldman settled with U.S. and Malaysian authorities for more than $2.9 billion for its role in raising funds for the 1Malaysia Development Berhad (1MDB) fund, from which $4.5 billion was embezzled. Roger Ng, Goldman’s former top investment banker for Malaysia, was sentenced to 10 years in prison.Gender discrimination settlement. In 2023, Goldman agreed to pay $215 million to settle a class action alleging that since 2002, nearly 3,000 female associates—typically early career professionals—and vice presidents had been unfairly evaluated and underpaid.Apple Card probe. In 2024, the Consumer Financial Protection Bureau ordered Goldman and Apple to pay $89 million for mishandling the Apple Card partnership. Issues included unresolved charge disputes, inaccurate credit report entries, and misleading information about interest-free payment plans for Apple products.Goldman Sachs alumni who shaped finance and governmentNumerous influential figures in finance and government once worked for Goldman Sachs. Prominent alumni include:

　　Hank Paulson, former Goldman Sachs chair and CEO who later became U.S. Treasury secretary Lloyd Blankfein, former Goldman Sachs CEO, who led the company from 2006 to 2018 Robert Rubin and Steve Mnuchin, both former U.S. Treasury secretaries Jim Cramer, host of CNBC’s Mad Money Jon Corzine, former New Jersey governor, U.S. senator, and CEO of derivatives broker MF Global at the time of its collapse in 2011 Gary Gensler, chair of the SEC in the Biden administration and former chair of the Commodity Futures Trading Commission (CFTC)Enduring influenceGoldman Sachs’ history highlights its resilience and adaptability in a constantly evolving financial landscape, even as it continues to navigate the opportunities and challenges of shaping the modern economy. From pioneering the commercial paper market to advancing sustainability and digital innovation, the company has consistently played a pivotal role in global finance.

　　Allie Grace Garnett