David Solomon's first months as chief executive of Goldman Sachs have long been in rhetoric, as he promised to take digital interruptions to the next level and diligently review the company's existing business, while welcoming a new period of transparency and introducing a Millennial-friendly "casual everyday" dress code.
But for all future-proofing statements one of Wall Street's most reputable institutions, the quarterly bank update on Monday failed to encourage investors seeking signs of Goldman's strategic rebirth. Its share fell almost 4 percent, bringing in their declines since Solomon was taken from October to 1
"Today, there is sound and fury … but little in terms of evidence (or progress) or recognition from investors," says Wells Fargo analyst Mike May, adding that the value Goldman's book price of 0.95 is "one of the lowest non-crisis historical values".
Jason Goldberg, bank analysts at Barclays, said that while "certain progress has been made" since Solomon had taken Solomon, there was "more work that could be done".
Here's what Mr. Solomon plans to do Master plan
Master plan to acquire Goldman next time is the single biggest point in talking to investors and analysts because the 12- year reign of Lloyd Blankfein as last year's leader. Mr. Solomon and his team promised a "front to back" review that would evaluate resource offerings and priorities throughout the business. An update was originally promised to the "spring" of 2019. On Monday, Goldman said that "comprehensive update" will come in the first quarter of 2020, while expecting progress reports earlier. Many analysts are not pleased.
"Ultimately, we have to see his strategic plan and need to implement it before we can be directed to him," says Christian Bolu, an autonomous analysts bank that believe that Solomon "is doing the right things (by) are trying to move businesses away from the slow growth of legacy businesses to faster growing ones ".
Fixed income revamp
Fixed income trading is the problem of the kid in Goldman when taken by Mr. Solomon. The bank posted the worst commodities year in 2017 and the revenues, cash and commodities earned in the FICC – dropped by worse than the equivalent of 22 percent in 2016 in 2018, replacing the criticism that Goldman did not get the secular business changes over the past few years.
Goldman's FICC performance has improved to other Wall Street banks in the last two quarters, partly due to the low base of the bank. While Mr. Solomon and his team promised to revise the FICC for today's opportunity, not the years of the boom of the past, concrete information on how this would happen is too much.
On Monday's earnings calls, executives talked about using FICC's entire business technology, cutting resources in lower segments and investing more reliable. "It's still not clear," Mr Mayo said, as he added that while Goldman was "spreading almost dozen places" for potential growth, he still did not know exactly what they were going to do.
Mass market revolution
Like former executive executive Mr. Blankfein representing the face of Goldman in the popularity of the FICC, Mr. Solomon – an amateur disc jockey – has been the spirit of the future in the mass market of the bank. The recent Goldman announcement of an Apple credit card is one step in that journey, even though the financial impact of the tie-up is unclear. Solomon has plans to expand Marcus, Goldman's online-only bank, and get deeper in managing money for wealthy Americans.
In investment banking, Mr. Accelerated Solomon's Goldman's efforts to serve smaller client corporations, announcing Monday's plans for a team of 100 investment bankers dedicated to companies valued at less than $ 2bn. Under Mr. Solomon, Goldman also maintains a money management business, an unreliable business led by large commercial banks such as Citigroup, HSBC and JPMorgan Chase.
Investment banking rebound
Investment banking – and especially the advisory end of business where Solomon Solomon built his career – was a bright spot since he started. In the first quarter, Goldman grew advisory advice to 51 percent, to $ 900m, better than the 12 percent increase in JPMorgan's rival advisory fees. Goldman also scoured JPMorgan to acquire as a place for M & A revenues and equity capital markets over the years to date.
The 1MDB legacy
The fall of Malaysia's 1MDB of money laundering scandals and bribes has been heavy over the first months of Solomon's rudder. The US Department of Justice is investigating the bank, and Malaysia is considering it for $ 7.5bn in Goldman allocation in assisting the state's non-state fund to raise $ 6.5bn, the billions have been withdrawn. Mr Solomon said on Monday that while "no one wants to get a resolution faster than we do", the bank does not know when the situation will be resolved.
Goldman announced in February that he did not see millions of dollars in payments to three former executives, including Mr. Blankfein, "until more information is available" regarding "ongoing government and regulatory inquiry" at 1MDB scandal. Goldman devised a $ 516m for litigation and regulatory issues in the fourth quarter of 2018, most of which are understood to be related to 1MDB.