Goldman Sachs Group, Inc.

Tracing Goldman Sachs’ evolution since 1869

Goldman Sachs traces its roots to 1869 when German immigrant Marcus Goldman set up a one-room office in Lower Manhattan. During an era when bank credit was tight and costly, Goldman provided local merchants an alternative by purchasing their promissory notes and reselling them to New York’s commercial banks. The practice laid the groundwork for the modern commercial paper market.

In 1882, Goldman brought his son-in-law, Samuel Sachs, into the business. Three years later, Goldman’s son, Henry Goldman, also joined the firm, which in 1888 was renamed Goldman, Sachs & Co. By 1896, the company joined the New York Stock Exchange (NYSE) as a trading member and soon established ties with European financial firms. From 1900 to 1920, Goldman Sachs grew to include offices in key cities such as Boston, Chicago, San Francisco, Philadelphia, and St. Louis.

Goldman Sachs helped advance fundamental analysis by introducing the practice of valuing stocks based on earnings and goodwill rather than relying solely on physical assets. A key component of this approach was the price-to-earnings (P/E) ratio, which Goldman played a significant role in popularizing. Despite the economic upheavals of the Great Depression and two world wars, the firm continued to diversify its financial services and maintain its influence in the industry.

Goldman Sachs has achieved some notable milestones throughout its history. The company:

• Began providing investment banking services in the early 1900s
• Expanded into equity sales and trading starting in 1945
• Developed its securities underwriting business in the 1950s
• Built one of the first mergers and acquisitions units in the 1960s
• Added real estate services in 1969 and fixed income in 1972
• Became active with commodities trading in the 1980s
• Established Goldman Sachs Asset Management in 1988 to provide investment and advisory services to institutions and individuals, beyond its traditional investment banking and trading operations

Goldman Sachs continued to grow geographically, too, adding offices worldwide. It became a publicly traded company in 1999, debuting on the NYSE under the ticker GS.

In response to the 2007–08 financial crisis, Goldman Sachs converted to a bank holding company from an investment bank. The change made Goldman eligible for the federal government’s Troubled Asset Relief Program (TARP) and other emergency loan programs established by the Federal Reserve.

At about the same time, Goldman Sachs launched two philanthropic initiatives—10,000 Women in 2008 and 10,000 Small Businesses in 2009—to support women entrepreneurs and small business owners globally.

Goldman Sachs introduced several notable ventures in the 2010s:

• Marquee in 2014 to improve trading, data security, and big data management
• Marcus in 2016, offering fixed-rate, no-fee personal loans
• Apple Card, launched in 2019 and developed in partnership with Apple, enabled users to view transactions, track spending, and make payments directly from their iPhones through the Apple Wallet app

Goldman Sachs has increased its focus on sustainability, forming the sustainable finance group in 2019. The company also launched the Goldman Sachs Fund for Racial Equity in 2020 and introduced the $10 billion One Million Black Women initiative in 2021.