Exclusive: Goldman Sachs to cut asset management investments that weighed on earnings

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Goldman Sachs Group Inc's asset management arm will significantly reduce the $59 billion of alternative investments that weighed on the bank's earnings, an executive told Reuters.

The bank will provide further details on its asset plan during Goldman Sachs' investor day on Feb. 28, he said. Alternative assets can include private equity or real estate as opposed to traditional investments such as stocks and bonds.Slimming down the investments on a bank's balance sheet can reduce volatility in its earnings, said Mark Narron, senior director of North American banks at credit rating agency Fitch Ratings.

If the environment improves for asset sales, Salisbury said he expected to see "a faster decline in the legacy balance sheet investments." Goldman Sachs' asset management arm closed a $15.2 billion fund earlier this month to make junior debt investments in private equity-backed businesses.

 

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Cost arm & leg

What is the picture of exactly?

Hopefully they will now close their GME and BBBY shorts . Cheers 🍻

So Campbell's soup will be back to $.99, maybe a $1.29?

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