'Goldman admits that it may have cut too deep into FICC over the years post the financial crisis'.
Bloomberg News reports that Goldman Sachs, seeking a rebound in its commodities business after a bout of losing trades dented earnings, has a plan built around hiring fresh stars and luring new clients.
The bank will bring in a few high-profile commodities salesmen as well as some traders, an acknowledgment that the roughly 180-person unit’s performance has suffered in recent years from failures to replace senior talent as it cut costs, people familiar with the strategy said. The firm also is enlisting its top rainmakers to pitch corporate clients in the energy, power, and metals and mining industries, said the people, who asked not to be identified because the firm hasn’t publicly discussed the plan.
The effort has yet to take hold, and the commodities division struggled in the first few weeks of the current quarter, according to a person familiar with the matter. The unit’s performance has been under review for months, during which it posted the worst quarter in 73 periods as a public company.
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