Goldman Sachs has shuffled its divisional setup, creating a new standalone consumer division that includes its Marcus lending unit, as well as its wealth-management and private-banking businesses, according to people with knowledge of the matter and internal memos obtained by Business Insider.
Strategy chief Stephanie Cohen and Tucker York, the head of the private-wealth business, will colead the new unit, which will be named the Consumer and Wealth Management Division, according to the memos. The changes will go into effect on January 1.
The change eliminates the former Consumer and Investment Management Division, which held the consumer business and the asset-management unit known as Goldman Sachs Asset Management.
GSAM will now be folded into a standalone asset-management division, which also includes the firm's merchant-banking business. That division will be led by merchant-banking head Julian Salisbury and Eric Lane, one half of the duo that led CIMD. The other half, Tim O'Neill, will join the executive office as a senior counselor, according to one of the memos.
The new divisional setup matches the way Goldman reports financial results, a change the firm made last year to better align with how CEO David Solomon wanted investors to think about the division. Goldman will now have four divisions: consumer and wealth management, asset management, investment banking, and global markets.
The changes at the top of the divisions also affected the next level of executives. Harit Talwar, the head of the consumer business, will become chairman of that business, handing the reins to Omer Ismail, who had been in charge of the US consumer unit. Bloomberg News first reported that appointment on Monday.
Russ Hutchinson, a financial-institutions banker, will replace Cohen as chief strategy officer, according to one of the memos.
