CBA to Shut Institutional Equities, Ties Up With Goldmanby
Certain roles will be affected, Commonwealth Bank says
Goldman deal gives CBA clients access to global equity markets
Commonwealth Bank of Australia will start to “wind down” its proprietary institutional equities team from Dec. 16 and the lender has entered an alliance with Goldman Sachs Group Inc. to offer clients access to global equity markets.
Certain jobs will be affected due to the closure of the unit, Commonwealth Bank said without giving a number. CommSec, the lender’s online trading platform, and private-bank customers will have access to Goldman Sachs’s research and pipeline of equity offerings including initial share sales, the banks said in a joint statement Monday.
Banks globally have been cutting jobs and businesses amid increased regulatory requirements and costs. Commonwealth Bank in October said it trimmed 20 roles in its global markets business, which focuses on fixed income, foreign exchange, commodities and interest rates.
“‘Our clients are increasingly operating internationally, and while we are able to offer global solutions in many parts of our business, we have not been able to provide access to global equity markets,” Kelly Bayer Rosmarin, Commonwealth Bank’s head of institutional banking, said in the statement. “Meeting this need with a partner of Goldman Sachs’s global capability and reputation is an exceptional outcome for our clients.”
For Goldman Sachs, the alliance gives it exclusive access to CommSec, the country’s largest online retail trading platform, according to the statement.