What Happened to The Goldman Sachs Group, Inc.?

Goldman Sachs, a venerable American multinational investment bank, has navigated a period of significant change and strategic recalibration since 2020. A major turning point was the resolution of the 1MDB scandal, a multi-billion dollar corruption case that had long shadowed the firm. In July 2020, Goldman Sachs reached a $3.9 billion settlement with the Malaysian government, including a cash payment and a guarantee to recover assets. This was followed in October 2020 by a global settlement totaling $2.9 billion with regulators in the U.S., U.K., Singapore, and Hong Kong, where a Malaysian subsidiary pleaded guilty to conspiring to violate anti-bribery laws. The firm also clawed back approximately $174 million in compensation from current and former executives, acknowledging institutional failure.

Simultaneously, Goldman Sachs embarked on an ambitious, but ultimately challenging, expansion into consumer banking through its Marcus brand and partnerships like the Apple Card. Initially, the firm set aggressive targets, aiming to significantly increase deposit balances and consumer loan and card balances by 2024 and 2025. However, this foray proved costly, leading to substantial losses and strategic re-evaluations. By late 2024 and early 2025, the firm began to scale back these efforts, incurring markdowns on its credit card portfolio, such as the transfer of Apple Card loans and contract termination obligations. In October 2024, the Consumer Financial Protection Bureau (CFPB) ordered Goldman to pay nearly $20 million to GM credit card users and a $45 million civil penalty for various violations, further highlighting the difficulties in this segment. By January 2026, Goldman Sachs announced an agreement to transition the Apple Card program to another issuer, signaling a clear exit from this consumer lending venture.

The firm has since sharpened its focus on its core, higher-margin businesses: Global Banking & Markets (GBM) and Asset & Wealth Management (AWM). This strategic pivot has yielded strong financial results. For the full year ended December 31, 2025, Goldman Sachs reported net revenues of $58.28 billion and net earnings of $17.18 billion, with diluted earnings per common share (EPS) of $51.32, a significant increase from 2024. The Global Banking & Markets division, in particular, saw higher net revenues, contributing to the firm's overall growth. Asset & Wealth Management also demonstrated robust performance, with record management and other fees in 2025.

As of March 2026, Goldman Sachs maintains a strong capital position and has a positive outlook for the global economy, expecting sturdy global growth of 2.8% in 2026. CEO David Solomon has expressed optimism about the macro setup for 2026, citing strong fiscal stimulus, a significant capital investment surge around AI, and a deregulatory swing in the U.S. The firm also increased its quarterly dividend to $4.50 per common share in January 2026, reflecting confidence in its financial health and commitment to shareholder returns. Despite this positive trajectory, Goldman Sachs continues its annual Strategic Resource Assessment (SRA), which involves performance-based layoffs, with reports suggesting potential cuts of 3% to 5% of staff in 2025 and ongoing discussions about similar actions in 2026.