Читать книгу Investment Banking For Dummies - Matthew Krantz - Страница 20

Of all the investment banks, few are as well known — and even as infamous — as Goldman Sachs. The firm’s long history in investment banking and its seeming omnipresence in markets around the world cement its recognized role as a premier investment bank.

Remember: It’s important to note that Goldman, too, found itself in a world of hurt during the financial crisis, and it had to turn to famed investor Warren Buffett to invest billions to help the company avoid a liquidity crisis. Goldman also borrowed billions from taxpayers, too. Nonetheless, those hoping to learn about investment banking, what it is, and how it works, are well served to look at the way Goldman Sachs structures its business and the size of those pieces, including the following:

 Institutional client services: The biggest part of Goldman’s business is what it calls institutional client services. Here, the firm arranges and helps conduct transactions for clients who want to buy and sell everything from bonds to foreign currencies and commodities, in a process called market making. Typically, the clients of this part of the business include big financial institutions, governments, and companies.

 Investing and lending: Goldman may consider itself to be an investment bank, but it also makes loan to businesses and governments. Most of the loans Goldman is involved in are long term; they may involve everything from financing real estate deals to building power plants.

 Investment management: Here’s where Goldman serves the role of helping its clients put their money to work. Goldman offers financial advice to institutions through mutual funds, accounts it manages on behalf of clients, wealth management services, and financial counseling. Goldman serves some very wealthy individuals and families in this part of its business.

 Investment banking: This part of Goldman is the one most interesting to readers of this book. Here, Goldman guides companies embarking on M&A, provides assistance in bringing companies public, and conducts financial restructurings.

You can see how the different parts of Goldman rank in order of importance to revenue in the following table.

Business Unit	2018 Revenue ($ millions)	2017 Revenue ($ millions)	2016 Revenue ($ millions)
Institutional client services	13,482	11,902	14,467
Investing and lending	8,250	7,238	4,262
Investment management	7,022	6,219	5,788
Investment banking	7,862	7,371	6,273

Source: Goldman Sachs 2018 annual report