What Goldman Sachs' 1Q earnings mean for CEO David Solomon

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Goldman Sachs took a beating in the first quarter. Here are 5 things David Solomon needs to do to quell the dissenters in 2023.

The disappointing results come as CEO David Solomon re-organizes Goldman's businesses.David Solomon just came off the most challenging year of his tenure as CEO at Goldman Sachs. The bank's disappointing latest quarterly results won't help.

To be sure, it's still early days in Solomon's shift away from Goldman's money-losing consumer banking business., Goldman Sachs announced the reorganization of its businesses into divisions that more closely resemble the bank of old. In doing so, Solomon vowed to return the bank to its roots as an investment banking and trading powerhouse while building a growing asset and wealth management business.

Here are the 5 things Solomon will need to do to prove Goldman is on the right track. They include beating the pants off the M&A advisory competition, selling home improvement lender GreenSky at a price that isn't embarrassing, and winning bigger in fixed-income trading. Goldman has long pointed out its privileged position at the top of the M&A league tables.

"Our backlog fell quarter-on-quarter, primarily in advisory, but we remain cautiously optimistic on the outlook for the second half of the year and 2024, particularly for strategic M&A," Solomon told analysts on a conference call. "I think one of the interesting opportunities is the private wealth opportunity over in Europe," Solomon replied."We see lots of customers that had accounts at both large Swiss institutions with a consolidation."

 

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