Considered Wall Street's preeminent investment bank, Goldman Sachs has an unparalleled history of long-lasting success, rooted in a distinct business culture in which the good of the firm supersedes individual achievements.
Company Profile
Considered Wall Street's preeminent investment bank, Goldman Sachs has an unparalleled history of long-lasting success, rooted in a distinct business culture in which the good of the firm supersedes individual achievements.
Goldman Sachs was founded in the US in 1869. Headquartered in New York, Goldman Sachs employs over 31,000 people worldwide and has a global footprint, with additional major offices in London, Frankfurt, Tokyo and Hong Kong. In Europe, Goldman has numerous branches in cities including Paris, Madrid, Geneva, Zurich, Milan, Dublin, Moscow and Stockholm. Goldman's first international office opened in London in 1970. Since then, the location has grown to accommodate over 4,000 professionals in a wide range of divisions. The U.K. office is now the hub of Goldman Sachs' European activities and a force in U.K. investment banking and securities. The office provides a range of services, including investment banking, trading and asset management. In the U.K., Goldman Sachs has been at the heart of many of the most significant mergers and acquisitions,
The venerable Goldman Sachs has a slew of "firsts" to its credit. Goldman played a major role in establishing the IPO markets in the early 1900s; five decades later, it was the first firm to focus on the institutional sales market. It was also the first investment bank to create a dedicated mergers and acquisitions group, negotiate a trade on the New York Stock Exchange and use emerging computer technology to distribute its research reports electronically. In 1986, it became the first American bank to rank in the top-10 in M&A volume in the UK. Goldman entered a new era when it went public in 1999. A second major change came in 2006 when Lloyd C. Blankfein replaced Henry Paulson at the firm's top post (who left the bank to become Secretary of the US Treasury). Another big shift occurred in fall 2008. After witnessing the sudden bankruptcy of Lehman Brothers and Merrill Lynch's acquisition by Bank of America, Goldman Sachs and Morgan Stanley-the last two large independent investment banks still standing-decided to take matters into their own hands. In the midst of US Congress endeavoring to pass a US$700 billion rescue package for big Wall Street players, Goldman and Morgan both requested to become bank holding companies. The requests were granted by the Federal Reserve on 21 September 2008, and since, the firms could operate with the backing of bank deposits instead of having to rely on high-risk forms of financing. CHANGE / EDIT as this comes from vault 2010
Goldman's business is divided in three core sectors: 1) investment banking, 2) trading and principal investments, and 3) asset management and securities services.
The investment banking sector is further sub-divided in two sectors: financial advisory and underwriting.
The investment banking division serves clients in the industrial, consumer, natural resources, health care, financial institutions, real estate, special products, technology, media and telecommunications industries. The Investment banking sector is further divided into two divisions and includes Financial Advisory (mergers and acquisitions (M&A), investitures, corporate defense activities, restructuring and spin-offs) and Underwriting (public offerings and private placements of equity, equity-related and debt instruments). Goldman Sachs is one of the leading M&A advisory firms, often topping the league tables in terms of transaction size. Goldman offers financial advisory services for mergers, acquisitions, divestitures and debt and equity capital. The firm gained a reputation as a white knight in the mergers and acquisitions sector by advising clients on how to avoid hostile takeovers, moves generally viewed as unfriendly to shareholders of targeted companies. Goldman Sachs, for a long time during the 1980s, was the only major investment bank with a strict policy against helping to initiate a hostile takeover, which increased the firm's reputation immensely among sitting management teams at the time. The investment banking segment accounts for around 17 percent of Goldman Sachs' revenues.
The trading and principal investments business is sub-divided into three categories: fixed income, currency and commodities, and equities and principal investments. It is the largest of the three segments, and is the company's profit center. The segment is divided into three divisions and includes Fixed Income, Currency and Commodities (trading in interest rate and credit products, mortgage-backed securities and loans, currencies and commodities, structured and derivative products), Equities (trading in equities, equity-related products, equity derivatives, structured products and executing client trades in equities, options, and Futures contracts on world markets), and Principal Investments (merchant banking investments and funds). This segment consists of the revenues and profit gained from the Bank's trading activities, both on behalf of its clients (known as flow trading) and for its own account (known as proprietary trading).
The asset management and securities services branch is also divided into three categories: asset management, securities services and commissions. As the name suggests, the firm's Asset Management and Securities Services segment is divided into two components: Asset Management and Securities Services. The Asset Management division provides investment advisory and financial planning services and offers investment products (primarily through separately managed accounts and commingled vehicles) across all major asset classes to a diverse group of institutions and individuals worldwide.[40] The unit primarily generates revenues in the form of management and incentive fees. The Securities Services division provides clearing, financing, custody, securities lending, and reporting services to institutional clients, including hedge funds, mutual funds, and pension funds. The division generates revenues primarily in the form of interest rate spreads or fees.
OUR TAKE ON GETTING HIRED
An unparalleled history of long-lasting success, rooted in a well established, distinct business culture has enabled Goldman to continuously attract and retain top talent.
Goldman Sachs has long been regarded by graduates as the number one destination for anyone with aspirations of a career in banking.
It comes as no surprise that Goldman runs one of the most rigorous and competitive selection process. Goldman recruits for candidates throughout the world at all the top universities, including the "most renowned London and European" schools. Only apply if you have top grades both at A-level and uni and brace yourself for a challenging interview schedule that incorporates multiple interviews and exams to complete.
Candidates will go through at least two rounds: One firm-wide round followed by another more specific departmental round, will allow you to meet with a broad number and a good cross section of people within the firm.
One way to land a permanent job with Goldman is to first secure a summer internship, which typically lasts 10 weeks. Sources tell us it's much easier landing a job with GS after the internship which is used as a primary stepping stone for recruiting
graduates. Interviews for summer positions aren't that much different from those for full-time slots (several interviews with people from different levels in the firm, with questions ranging from general to technical and business related"). Summer internships kick off with an orientation to the entire firm, an introduction to its
culture and a look at the perks of working for Goldman Sachs. This is followed by division
specific training. Throughout the programme, you'll have a mentor and a "buddy" to
lend you assistance and guidance. All in all, make sure you bring an appetite to learn.
If you want to jump right in as a full-time analyst, you can be reassured that your choice of degree discipline is not important - Goldman Sachs will consider economists and historians equally, provided you can prove you have an interest in financial markets. The firm's recruitment ethos says it is "built upon our belief that
a candidate's understanding of the Goldman Sachs culture is as important as the skills and talent she or he can bring to the firm." The interview process will give you an opportunity to meet many of the professionals with whom you may end up working. At the first round, you will typically talk about your past experience and achievements, while the second round will be more technical and assess how good a fit you are for the department you applied for. If you're taken on as an analyst, you'll be treated to ongoing developmental
assignments throughout your years in the position, as well as exposure to multiple disciplines. All in, the firm offers very good opportunities for mobility in a plethora of different directions from the beginning.
