Goldman Sachs' investor day led to more questions than answers
Hiya! Dan DeFrancesco in NYC. It looks like Bobby Axelrod is returning for the newest season of "Billions," which got me thinking: What's the best Wall Street-inspired show on TV these days? I created a poll to see what you all think. You can vote here. (It's anonymous, and you don't need to provide your email.)
On tap, we've got stories on the top people focused on alternatives at BlackRock, inside the key to fintech Plaid's growth this year, and how to be "layoff-proof."
But first, let's open it up to questions.
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1. Goldman faces the music.
All eyes were on Goldman Sachs yesterday as the bank held its second-ever investor day. The event is meant to be a chance for top executives to map out future plans for the bank and ease concerns from analysts and its biggest shareholders.
Insider's Carter Johnson and Hayley Cuccinello were there in-person to get a boots-on-the-ground perspective. From what was served for breakfast (health-conscious items in addition to, my favorite, tater tots) to the mood of the room during a tense Q&A with CEO David Solomon, Carter and Hayley have a full report of how it all went down.
The biggest news of the day was Solomon, along with other key executives, acknowledging the bank was exploring "strategic alternatives" for its consumer business. For those not well-versed in Wall Street jargon, that typically means some type of sale or spinoff of a business.
That might have provided welcome clarity about the future of a business that has cost Goldman more than $3 billion since 2020. Details, however, were scant as Solomon refused to elaborate on what exactly those "strategic alternatives" were, getting visibly frustrated when asked for more info multiple times.
I'm not sure what Solomon expected. The consumer business is a lightning rod for the bank, so any mention of it was bound to grab people's attention. Hinting at "strategic alternatives" was something people would want to hear more about. To have no plan for follow-up questions, or to think analysts would be satisfied by non-answers, seems like a miscalculation.
In short, Solomon took a half measure. And if I've learned anything from "Breaking Bad," it's that you can't take half measures. You need to go all the way.
But at the end of the day, what I think doesn't matter. It's the shareholders who Solomon is focused on. And it seems they too, were a bit disappointed.
Goldman's shares were down 3.8% yesterday.
Get the rundown on the nine biggest takeaways from Goldman's investor day.
And click here to read more about Goldman exploring "strategic alternatives" for its consumer biz.
In other news:
2. BlackRock sells its robo. The giant asset manager has sold off FutureAdvisor, the robo-advisor it bought in 2015, to Ritholtz Wealth Management, Insider has learned. More on the deal here.
3. Who do you think you are? I am! Plaid is betting on identity verification being a key part of the fintech's growth plans this year. We've got the rundown on why making sure customers are who they say they are is big business for the omnipresent startup. Read more here.
4. BlackRock's alt execs. No, these aren't the people at the firm into The Smiths. Alternative assets are a top priority at the massive firm, accounting for $514 million in performance fees last year. Meet the 22 BlackRock executives leading the way in the world of alts.
5. Oaktree Capital wants to help fund PE takeovers. The private-investment firm cofounded by Howard Marks is raising $10 billion for a fund focused on financing leveraged buyout groups, the Financial Times reported. For a rundown of all the key players in private credit, including those at Oaktree, check out our list of the 20 people to know.
6. A hedge fund that outsourced its trading ideas to amateur quants has already hit it big. Numerai posted returns of 20% in 2022 by crowdsourcing its trading strategy with freelancers, Bloomberg reported. Read about the firm described by its 35-year-old founder as "the next Millennium."
7. A loan from Bank of America sits at the heart of a federal investigation into the Washington Commanders and owner Dan Snyder. The $55 million credit line from BofA was taken out unbeknownst to the NFL team's minority owners despite needing their approval, ESPN reported. More on the disputed loan here.
8. The housing market is starting to open up in a handful of big cities. Nationally, housing supply is still pretty tight, but strategists at Goldman Sachs see supply levels rising in four well-known cities that might surprise you. Here are the popular cities set to see a drop in housing prices.
9. How to be "layoff-proof." My first recommendation would be to not partake in "Bare Minimum Mondays." Then, I'd recommend you follow these tips from recruiters at PwC, Walmart, Lockheed Martin, and Netflix about how to safeguard your job. Learn more here.
10. How to identify the narcissist in your life. "Aren't I more important to you than your friends?" "I'm acting this way because I'm scared to lose you." "You can't blame me, you know I have a problem." If that sounds like someone you know, you may have a narcissist on your hands. Here are the most common phrases and tactics used by narcissists.
Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) and Nathan Rennolds (tweet @ncrennolds) in London.