Goldman Plans Debt and Equity Capital Markets Merger
Byline: Jeremy Adams in New York
Goldman Sachs has admitted that it is "actively considering" plans to merge its debt and equity capital markets businesses.Goldman is understood to be close to deciding whether to create a single capital markets unit. Lucus van Praag, a Goldman spokesman in New York, said that the bank has undertaken a study to look at putting the two businesses together but added that "nothing is decided".
In April, Financial News reported that Goldman was looking at plans to merge parts of its debt and equity divisions, including capital markets - something the bank denied at the time.
While there has been no internal announcement about the plans, some senior figures are confident that the merger will happen.
One managing director at Goldman said: "This will be solely a merger of the capital markets and syndicate functions of the debt and equity divisions - that is where the cost benefits will come."
Goldman is looking at the merger principally to save money in a market yielding far less in fees than it did in the late 1990s. …