Goldman Sachs

Marcus Goldman, the founder of Goldman Sachs, is born in Bavaria in 1821 to a Jewish family led by a peasant cattle drover. His humble beginnings contrast with the future success he will achieve in the financial world.

Goldman Sachs was founded in 1869 and has become one of the most profitable and influential banks in the world through its investments and aggressive trading strategies.

In 1882, Samuel Sachs, Marcus Goldman's son-in-law, joined the firm, expanding the partnership.

In February 1884, Goldman & Sachs faced a legal examination when a note they sold was found to have a forged signature, leading to a lawsuit that questioned the responsibility of financial intermediaries in transactions.

In 1885, Goldman Sachs adopted its present name, Goldman Sachs & Co., when Henry Goldman and Ludwig Dreyfuss joined the business. This marked a significant milestone in the firm's history.

In 1888, the firm adopted the name Goldman, Sachs & Co. to include Ludwig Dreyfuss as a partner.

In 1894, Goldman Sachs celebrated its 25th anniversary during the US economic recession of the mid-1890s, showcasing its resilience and longevity in the financial industry.

In 1896, Goldman Sachs joined the New York Stock Exchange and pioneered the use of commercial paper for entrepreneurs.

In 1897, Goldman Sachs forms a partnership with Kleinwort, Sons & Co. of London, marking the beginning of a collaboration in international finance.

In 1906, Goldman Sachs led an initial public offering for Sears, Roebuck and Co. to provide capital for its growing catalog business, marking the rise of the consumer/retail sector in the U.S. economy.

In 1907, Sidney J. Weinberg started his career at Goldman Sachs as a janitor's assistant. He later became the firm's longest-serving senior partner and a prominent leader on Wall Street.

In 1910, Walter Sachs joins the firm founded by his grandfather Marcus Goldman, working alongside his father and brothers.

During World War I, a disagreement arises among the partners of Goldman Sachs as Henry Goldman expresses his loyalty to Germany and his family heritage.

Goldman Sachs gains prominence by handling the offering of Merck & Co. during the aftermath of World War I.

In 1918, Waddill Catchings joined the firm and quickly rose to become the first senior partner who was not part of the Goldman or Sachs families.

In 1919, Goldman Sachs marks its 50th year as the Treaty of Versailles is signed, marking the end of World War I, and the first nonstop trans-Atlantic flight takes place.

In 1920, Goldman Sachs moved to new premises on 30-32 Pine Street with a capital of $1.5 million.

In 1921, Goldman Sachs co-led the management of its first utility company offering by issuing approximately US$3.8 million in bonds for the San Antonio Public Service Company. This marked a significant financial transaction for the firm during a time when San Antonio was the largest city in Texas.

In 1922, the Goldman Sachs partnership transitioned to a new entity called Goldman, Sachs & Co., which operated briefly as a joint stock association. This was part of the firm's organizational changes before reverting to a partnership in 1927.

On December 4, 1928, Goldman Sachs launched the Goldman Sachs Trading Corp., a closed-end fund. The fund faced challenges during the Wall Street Crash of 1929, impacting the firm's reputation.

In 1930, Sidney Weinberg becomes senior partner at Goldman Sachs, leading the firm's recovery from the 1929 financial crash and overseeing more than three decades of growth and innovation.

During the Great Depression, Goldman Sachs makes its first-ever acquisition by purchasing Chicago-based Hathaway & Co. in 1932, becoming one of the largest commercial paper dealers in the US.

In 1956, Goldman Sachs played a key role in leading the Ford Motor Company's historic US$657 million IPO, which was the largest common stock offering in the United States at that time. Sidney Weinberg, a close friend and advisor to the Ford family, also joined Ford Motor as one of its initial outside directors.

In 1957, Goldman Sachs led Disney's initial public offering at a share price of US$13.88 on the New York Stock Exchange, marking a significant event in the financial history of Disney and the stock market.

In 1965, Goldman Sachs creates the Management Committee as a senior governing body overseeing strategic, policy, and management decisions for all the firm's businesses.

In 1967, Gus Levy, a key figure at Goldman Sachs, successfully executes a historic block trade involving over one million shares of Alcan Aluminum valued at more than US$26.5 million.

In 1968, Goldman underwrote short-term financing for Penn Central Corporation, which filed for bankruptcy in 1970, causing lawsuits and financial challenges for Goldman Sachs.

In 1969, Gus Levy becomes the senior partner at Goldman Sachs, leading to a period characterized by a stronger international focus and a greater willingness to take on trading risks.

In 1970, under the direction of Senior Partner Stanley R. Miller, Goldman Sachs opened its first international office in London. This marked a significant step in the firm's global expansion.

In 1971, Goldman Sachs facilitates the entry of Japanese commercial paper into the skeptical US market by arranging a US bank letter of credit to support the offering from Mitsui & Co., Ltd., a long-standing Japanese trading company.

In 1974, Goldman Sachs led a commercial paper issuance for Électricité de France, marking the first ever in the United States on behalf of a foreign government entity.

In 1976, John Weinberg and John Whitehead are appointed as co-heads of Goldman Sachs, overseeing significant initiatives and growth during their joint leadership of almost eight years.

In 1979, John Whitehead establishes a set of 14 Business Principles that define the core values of Goldman Sachs.

Goldman Sachs acquired J. Aron & Company, a commodities trading firm, which merged with the Fixed Income division to form Fixed Income, Currencies, and Commodities. This acquisition led to the former CEO of Goldman, Lloyd Blankfein, joining the firm.

In 1982, Goldman Sachs forms a board of international advisors with diverse backgrounds in government, diplomacy, and multinational business.

Goldman Sachs opened an office in Hong Kong in 1983, recognizing the strategic importance of the region as a financial hub in Asia.

In 1984, John L. Weinberg, son of Sidney Weinberg, becomes the sole senior partner at Goldman Sachs after co-senior partner John Whitehead retires.

Goldman Sachs underwrote the public offering of the real estate investment trust that owned Rockefeller Center in 1985, marking the largest REIT offering at that time.

In 1987, Goldman Sachs expands its operations by opening an office in Paris, marking its third office in Europe. This move signifies the firm's commitment to strengthening its presence in Europe.

In 1988, Goldman Sachs Asset Management (GSAM) was established, initially focusing on fixed income separate account management for pension funds and institutions. Over time, it expanded its services to include a wide range of portfolio and mutual fund management for global clients.

In 1989, Robert M. Freeman, a senior Partner at Goldman Sachs, pleaded guilty to insider trading for his own account and the firm's account, marking another case of illegal trading within the company.

Former Prime Minister Margaret Thatcher officially opens Goldman Sachs' new European headquarters in London, bringing together the firm's London-based staff in a modern office building on Fleet Street.

In 1995, Goldman Sachs, in partnership with David Rockefeller, acquired Rockefeller Center, a significant move that expanded the firm's real estate investment portfolio.

In 1996, Goldman Sachs made history by serving as the joint global coordinator for the first Japan Tobacco global equity offering. This milestone event established Goldman Sachs as the first non-Japanese company to underwrite shares for Japan’s Ministry of Finance.

In May 1997, Goldman Sachs was chosen as the sole handler for the Kuwait Investment Office's block sale of British Petroleum shares worth US$2 billion, setting a new record for the largest block sale by a single firm.

In 1998, after years of debate, Goldman Sachs partners vote to take the firm public, making it one of the last major financial institutions to do so.

After years of internal discussions, Goldman Sachs became a public company through an initial public offering in May 1999. This marked a significant shift in the ownership structure of the firm.

Goldman Sachs acquired Spear, Leeds, & Kellogg in September 2000, a major specialist firm on the New York Stock Exchange, for $6.3 billion.

Goldman Sachs was sued for inflating stock prices and issuing misleading reports for companies like Exodus Communications and RSL Communications. They were accused of kickback bribes and intentionally undervaluing IPOs.

Goldman Sachs traders became bearish on the housing market in 2004 and developed mortgage-related securities to protect the firm from investment losses. As the market began to decline, Goldman created more of these securities to profit from mortgage defaults.

In December 2005, Goldman Sachs becomes the largest shareholder in Sanyo Electric Credit, the finance unit of the Japanese conglomerate Sanyo.

One month after becoming the largest shareholder in Sanyo Electric Credit, Goldman Sachs invests in Sanyo Electric, a Japanese conglomerate.

Goldman issued the $800 million Hudson Mezzanine CDO in 2006, betting against it while also selling it to investors. The CDO performed poorly, resulting in significant losses for investors.

In May 2006, Henry Paulson left Goldman Sachs to serve as the United States Secretary of the Treasury, leading to Lloyd Blankfein being promoted to chairman and chief executive officer.

In January 2007, Goldman Sachs, along with CanWest Global Communications, acquired Alliance Atlantis, the company holding the broadcast rights to the CSI franchise.

In October 2007, Goldman Sachs faced criticism for packaging risky mortgages and selling them to the public as safe investments.

Goldman Sachs participated in crucial meetings at the New York Fed regarding AIG's fate. There were claims of preferential treatment, but later corrections clarified the involvement of CEO Blankfein and other firms' representatives.

On September 21, 2008, Goldman Sachs confirmed its transition to a traditional bank holding company, marking the end of the business model of an independent securities firm.

On September 23, 2008, Berkshire Hathaway agreed to purchase $5 billion in Goldman's preferred stock and received warrants to buy another $5 billion in Goldman's common stock within five years.

On November 11, 2008, Goldman Sachs earned from underwriting California bonds while advising other clients to short those bonds, leading to criticism and discussions about the bank's actions.

In June 2009, Goldman Sachs repaid the U.S. Treasury's Troubled Asset Relief Program (TARP) investment with interest, marking a significant financial milestone.

On July 15, 2010, Goldman Sachs settled out of court, agreeing to pay the SEC and investors US$550 million, including $300 million to the U.S. government and $250 million to investors. This settlement was one of the largest penalties ever paid by a Wall Street firm.

In April 2011, Goldman Sachs warned investors of a dangerous spike in the price of oil, attributing it to excessive speculation in petroleum futures. The bank believed that speculators, including itself, had artificially driven the price of oil higher than supply and demand dictated.

Confidential documents leaked in August 2011 detailed the positions of several investment banks, including Goldman Sachs, in the oil futures market just before the peak in gasoline prices in the summer of 2008. The presence of these banks' positions was significant as they had the means to sway prices without producing or taking physical possession of oil.

Goldman Sachs announced the shutdown of Global Alpha Fund LP, its largest hedge fund, in September 2011. The fund, once a top-performing hedge fund with over $12 billion in assets under management, used quantitative analysis and computer-driven models for high-frequency trading.

In March 2012, Greg Smith, a former head of Goldman Sachs U.S. equity derivatives sales business in Europe, criticized the company and its executives in an op-ed in The New York Times, leading to his resignation.

In August 2013, a federal jury found Fabrice Tourre, a former Goldman Sachs vice president, liable on six of seven counts, including misleading investors about a mortgage deal. He was fined $650,000 and forced to return a $175,000 bonus.

In January 2014, the Libyan Investment Authority filed a lawsuit against Goldman Sachs for $1 billion after significant losses on investments made in 2007. The lawsuit alleged that Goldman used unethical practices to gain access to the sovereign wealth fund.

In August 2015, Goldman Sachs agreed to acquire General Electric's GE Capital Bank online deposit platform. The acquisition included $8 billion of online deposits and brokered certificates of deposit.

In January 2016, Goldman Sachs agreed to pay $15 million for granting locates to settle short sales without adequate review between 2008 and 2013. The firm also gave incomplete responses to SEC examiners about its securities lending practices.

In April 2016, Goldman Sachs launched GS Bank, a direct bank. This move marked the expansion of Goldman's presence in the banking sector.

In May 2017, Goldman Sachs bought $2.8 billion worth of PDVSA 2022 bonds from the Central Bank of Venezuela during the 2017 Venezuelan protests. The purchase was controversial as it was criticized for potentially fueling hunger in Venezuela amidst malnutrition and hyperinflation.

Following Lloyd Blankfein's retirement in 2018, David Solomon took over as the CEO and chairman of Goldman Sachs.

The Goldman Sachs TechNet Conference Asia Pacific 2018 was held at Grand Hyatt Hong Kong on May 9, 2018.

In March 2019, Apple Inc. announced a partnership with Goldman Sachs to launch the Apple Card, the bank's first credit card offering. This collaboration aimed to provide innovative financial services to customers.

The Goldman Sachs TechNet Conference Asia Pacific 2019 was held at Grand Hyatt Hong Kong on May 16, 2019, at 9:15 PM EDT.

In December 2019, Goldman Sachs pledged to invest and finance $750 billion in climate transition projects. The company also announced plans to cease financing oil exploration in the Arctic and certain coal-related projects.

Effective July 1, 2020, Goldman Sachs implemented a policy where the firm no longer manages initial public offerings of a company without at least one diverse board candidate, with a focus on women, in the U.S. and Europe.

In August 2021, Goldman Sachs announced the acquisition of NN Investment Partners for €1.7 billion. NN Investment Partners had US$335 billion in assets under management.

Goldman Sachs announced the acquisition of GreenSky for about $2.24 billion in September 2021, completing the deal in March 2022.

During March 2022, Goldman Sachs announced the acquisition of NextCapital Group, a Chicago-based digital retirement advice provider.

In June 2022, Goldman Sachs offered its first derivatives product linked to Ether (ETH), a cryptocurrency. The bank also became an official partner of McLaren.

In September 2022, Goldman Sachs announced the layoff of hundreds of employees across the company, following a significant reduction in earnings reported in July of the same year.

As of December 2023, the top 10 shareholders of Goldman Sachs included The Vanguard Group, BlackRock, and State Street Corporation. These major institutions held significant ownership stakes in the company.

Goldman Sachs invested ₹72 crore in Medi Assist Healthcare in January 2024, acquiring 15 lakh shares in the company.

In February 2024, CNBC reported that Goldman Sachs was expanding its reach into the economic lives of more Americans through Rhythm Energy, a provider of independent energy in Texas.

Goldman Sachs faced criticism for financing environmentally harmful projects, such as oil and gas exploration. In response, the bank pledged to invest $150 billion in sustainable finance by 2025, aiming to address concerns over its role in contributing to climate change.