The Wall Street Journal: New Goldman CEO Plans To Cut Commodities Business

Commodities trading at Goldman Sachs Group Inc., GS, +0.10%   once a huge moneymaker and a central part of the bank’s DNA, is on the chopping block.

Goldman plans cuts to its commodities arm after a monthslong review showed the business uses too much capital for too little profit, according to people familiar with the matter. Executives are discussing pulling back in some areas, such as the physical trading of iron ore, platinum and other metals, and reducing costs associated with the sprawling storage and transportation network required to support its trading operations.

Cuts to the commodities business are among a series of planned changes that executives will present to Goldman’s board later this month, people familiar with the matter said.

A spokesman said the firm hadn’t reached any final conclusions related to its business reviews, which remain ongoing.

An expanded version of this story appears on WSJ.com

RECENT NEWS

Gyrostat Capital Management: The Hidden Architecture Of Consequences

When Structures Themselves Become A Risk In portfolio construction, risk is rarely where we look for it.... Read more

Gyrostat November Outlook: The Rising Cost Of Doing Nothing

Through the second half of 2025, markets have delivered a curious mix of surface tranquillity and instabi... Read more

Gyrostat Capital Management: Blending Managers - From Style Diversification To Scenario Diversification

The Limits of Traditional Diversification For decades, portfolio construction has ... Read more

Gyrostat October Outlook: Beneath The Calm, The Cost Of Protection Rises

 Even as global equity indices remain near record highs, the pricing of risk is shifting quietly ben... Read more

Gyrostat Capital Management: Solving The Nastiest Problem In Finance

Retirement Income and Sequencing Risk Executive Summary ... Read more