Building on its own leadership in market making and clearing, Goldman Sachs acquires Spear, Leeds & Kellogg in 2000 to become one of the leading market makers of equities and options in the US marketplace.
The history of Goldman Sachs over a century and a half is one of predominantly organic growth, with few acquisitions or mergers. One of the most noteworthy of these transactions was the acquisition of Spear, Leeds & Kellogg in 2000.
Founded in October 1931 by Harold Spear and Laurence C. Leeds, two members of the New York Stock Exchange (NYSE), Spear, Leeds & Kellogg was a leader in securities clearing and execution as well as market making — both floor-based and off-floor. At the time of the merger, it was the leading clearing firm by volume and the largest specialist on the NYSE and one of the largest market makers in Nasdaq shares. Spear, Leeds & Kellogg had rejected earlier deal alternatives, including at one point considering a leveraged buyout or launching its own IPO. Like J. Aron, Goldman Sachs had a long business relationship with Spear, Leeds & Kellogg prior to the acquisition.
For Goldman Sachs, the combination offered the opportunity to build on the firm’s leadership in market making, execution and clearing in addition to providing another window into rapidly evolving trading technology. The transaction was valued at US$6.5 billion, comprising US$4.4 billion of Goldman Sachs common stock (34 million shares) and cash.
The firm leveraged several assets from Spear, Leeds & Kellogg in the development of electronic trading platforms like REDIPlus. With the decline in specialist trading and the rise in high-frequency equities trading, Goldman Sachs sold the designated Spear, Leeds & Kellogg post on the floor of the NYSE to IMF Financial Markets, a Dutch electronic market maker, in 2014. After the sale, Goldman Sachs retained its brokerage unit on the NYSE trading floor, providing liquidity electronically for the equities listed in that market.
This article was originally published as part of a series commemorating the 150th anniversary of Goldman Sachs' founding in 1869.
The division that is responsible for more of Goldman's net revenues than any other division is Global Markets. In this division, Goldman acts as a market maker.
The 1MDB scandal was a black mark for Goldman. The bank paid more than $5 billion in penalties to the U.S. and Malaysia and took away compensation from some top executives. It also admitted that a subsidiary broke U.S. corruption laws. Its board called the matter an “institutional failure.”
1989, building an eventual $32-billion stake, but exited that stake in the first quarter of 2022 amid a series of scandals for the bank. Berkshire injected $5 billion into Goldman Sachs Group Inc (GS.
NEW YORK, Jan 27 (Reuters) - Goldman Sachs Group Inc. (GS. N) slashed compensation for its Chief Executive Officer David Solomon by 29% to $25 million for 2022, the bank said in a filing Friday. Solomon's pay comprises a $2 million base salary, $6.9 million cash bonus and $16.1 million in restricted stock.
In 2008, at the peak point of the global financial crisis, the legendary investor invested $5 billion in Goldman Sachs to strengthen the firm's capitalisation and liquidy in turbulent times. The then decision of Buffett has generated a return of roughly $3.1 billion for him.
NEW YORK (AP) — Goldman Sachs will pay $215 million to settle a years-long class action lawsuit that claimed the bank discriminated against women when it came to pay, performance evaluations and promotions. The lawsuit, initially filed in September 2010, was set to go to trial next month.
Introduction: My name is Lidia Grady, I am a thankful, fine, glamorous, lucky, lively, pleasant, shiny person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
Founded in October 1931 by Harold Spear and Laurence C. Leeds, two members of the New York Stock Exchange (NYSE), Spear, Leeds & Kellogg was a leader in securities clearing and execution as well as market making — both floor-based and off-floor. At the time of the merger, it was the leading clearing firm by volume and the largest specialist on the NYSE and one of the largest market makers in Nasdaq shares. Spear, Leeds & Kellogg had rejected earlier deal alternatives, including at one point considering a leveraged buyout or launching its own IPO. Like J. Aron, Goldman Sachs had a long business relationship with Spear, Leeds & Kellogg prior to the acquisition.