Major Goldman Reorg Will Fold Consumer Banking Marcus into Wealth Management

Goldman Sachs is reportedly moving forward with one of the most extensive reorganizations in its 153-year history — and the Wall Street bank’s fourth restructuring in three years.

The bank is planning to streamline its organization into three divisions — investment banking and trading, asset and wealth management and transaction banking — with consumer banking arm Marcus folding into the wealth unit, the Wall Street Journal reported on Monday (Oct. 17), citing unnamed sources with insider information.  PYMNTS reached out to Goldman Sachs for comment.

Goldman currently has four businesses — investment banking, global markets, asset management, and consumer and wealth management.

See also: Goldman Dials Back Retail Banking Focus

The legacy investment bank was already said to be in the process of drawing up plans to reframe Marcus from a banking-for-all consumer product to one directed to those with higher income levels, PYMNTS reported on Oct. 10.

Sources told Bloomberg that Goldman was planning to reconfigure the Marcus management team to lead a business unit combined with asset management and wealth management, PYMNTS reported.

The investment bank’s push into consumer banking with Marcus racked up $4 billion in losses and has been slow to release products, like the long-delayed checking account. Marcus serves more than 14 million customers and had more than $100 billion in deposits with over $16 billion in cards and loan balances, per the bank’s reports.

Read more: Why Goldman’s Marcus May Have Missed the Mark

Aside from folding Marcus into a combined asset and wealth management division, Goldman’s reorganization plans also include merging investment banking and trading into one unit, the sources told WSJ.

Marc Nachmann, the bank’s global co-head of the global markets division, is expected to help run the combined asset- and wealth-management division, the sources told WSJ. The sources said that other senior executive roles are also expected to be affected in some manner.

The bank’s reorganization plans are expected to be announced with Goldman’s third-quarter earnings announcement on Tuesday (Oct. 18), Reuters reported on Monday (Oct. 17) citing unnamed sources with insider information.