Goldman Sachs mulls 'strategic alternatives' amid losses
STORY: Goldman Sachs is considering ‘strategic alternatives’ for its consumer business following billions of dollars in losses.
That’s according to Chief Executive David Solomon, speaking to investors at the company's New York headquarters on Tuesday (February 28).
He told them: "Sometimes we fall short… Sometimes we don't execute. But we always learn and adapt."
But Solomon would not specify exactly what those strategic options would be.
Shares dipped in the aftermath of the announcement, which analysts attributed to a lack of clarity.
Carey Halio is the global head of Goldman’s investor relations:
“The message that we wanted to deliver today is that we put these businesses together, we have a plan to deliver pre-tax profitability by 2025, and we’ll make significant improvements towards that goal this year. But also, we want to be nimble, we want to adapt, and learn as we go. And so we are going to explore strategic alternatives.”
Last month -- Goldman said it lost $3 billion in nearly three years on its Platform Solutions business. It was the first time Goldman gave a detailed look on the business that was intended to diversify the Wall Street firm's operations away from its traditional mainstays of trading and dealmaking.
But Tuesday’s comments signal a further retreat from its Main Street ambitions... and came at the company's investor day, its second in its 154-year history.