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Paul J. Davies

David Solomon’s New Goldman Sachs Isn't New Enough

The bank’s second-ever investor day failed to distract from its consumer missteps.

What’s next?

What’s next?

Source: Bloomberg

What investors wanted from Goldman Sachs Group Inc.’s second-ever investor day on Tuesday was a clear vision of a future of higher and more reliable returns. What they got was a sales pitch on how great things already are. They were unimpressed. The stock dropped 3.8% on the day, making it one of the worst performers in the S&P 500.

The only piece of real news was that Chief Executive Officer David Solomon might be ditching his pet project through a potential sale. His ambitions to go big in consumer finance were already curtailed late last year under pressure from investors and colleagues. Several executives said Tuesday that the bank was “considering strategic alternatives” for parts of the unit, which has cost the bank billions in startup investments and bad-debt provisions over recent years.