February 5, 2019
(Reuters) – Goldman Sachs Group Inc plans to chop its commodities business after a months-long review showed the business was using too much capital for too little profit, the Wall Street Journal reported https://on.wsj.com/2Dad9QQ on Tuesday, citing people familiar with the matter.
Goldman is discussing pulling back in physical trading of iron ore, platinum and other metals, the WSJ report said, adding the reductions in the business will be presented to the board later this month.
The proposed cuts come after Goldman reported an 18 percent decline in its fourth-quarter fixed income, currency and commodities business, which used to be a bigger and more profitable part of the bank’s central operations once upon a time.
Goldman Sachs was not immediately available for a comment.
(Reporting By Aparajita Saxena in Bengaluru; Editing by Shailesh Kuber)