Goldman to Review Commodities After Worst Start in a Decade
- Bank’s poor results said to continue after weak first quarter
- As rivals cut back, Blankfein has stayed committed to sector
Goldman Sachs Said to Review Commodities Business
Goldman Sachs Group Inc., the dominant commodities trader on Wall Street, is reviewing the direction of the business after a slump in the first half of the year, according to people with knowledge of the matter.
By reconsidering the bank’s long-held view that the downturn in profitability is cyclical and will eventually reverse, Chief Executive Officer Lloyd Blankfein, who started his career in the commodities business, is drawing closer to the industry’s prevailing wisdom. Morgan Stanley, JPMorgan Chase & Co., Barclays Plc and Deutsche Bank AG have cut back or exited commodities trading in recent years amid falling revenue and tougher regulation.