Goldman Sachs returns to Detroit, opens bank's 2nd-largest Midwest wealth office

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After 33 years, Goldman Sachs is returning to Detroit.
The investment bank and financial management firm closed its last Detroit office in 1990. The new office, in Bedrock Detroit's 1001 Woodward building downtown, opened in September and marks the firm’s first Midwest office opening for the investment banking giant this century. Headquartered in New York, Goldman Sachs has more than 45,000 employees and 80 offices globally. The new Detroit office is home to 40 employees in the leased space. The firm has plans to have up to 50 wealth employees in the near term. Detroit is the firm's second-largest wealth office in the Midwest behind Chicago.

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Brian Grzelakowski, the Midwest region head of private wealth management for Goldman Sachs, said the office is representative of the firm’s continued growth in the city of Detroit and Southeast Michigan. “The wealth business was not what it was in 1990 that it is today, due to us experiencing tremendous growth of our business in Detroit,” Grzelakowski said. “At this point, over 80% of our advisory teams in the Midwest engage and have clients in Detroit. So much so that it just became apparent to us that the growth in the city in terms of our client base and our people spending time there is so consistent that we wanted to lean into that and accelerate it by having a physical office presence.”Goldman Sachs’ history in Detroit can be traced back to 1956 when the investment bank led Ford Motor Co.’s $657 million IPO, which was the largest common stock offering to that date in the United States. In 2023 money, that equates to more than $7.4 billion. The transaction also catalyzed the firm’s private wealth business, Grzelakowski said.

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https://www.crainsdetroit.com/bankin...detroit-office

I predict in a few years the Big Three and Goldman Sachs will compete in 'Bowling for Bailouts' at The Garden Bowl - Majestic Detroit

Let's see if another global firm will open in The Block when it's completed

2nd largest in the mid-west with all of 30-50 employees. I wonder how big the 3rd largest is?

Yea all this time y’all be acting like you be broke,the cats out of the bag now,I am going to buy some of those vacant lots just to dig them up in order to find all of those mason jars that have been buried through the years because there is so much cash going around.

Pretty slick strategy,claiming your broke while telling everybody else they need to share the wealth,ya got to give it up now.

None of this checks in the mail stuff,if you are going to spend the wealth equally,they have fancy technology where you can transfer funds with the click of a button.

JP Morgan = $2.6 Trillion
Goldman Sachs = $933 billion
BOA - Bank of American = $564 billion

Citi corp = $1.9 Trillion
Deutsche = $1.77 Trillion
UBS = $958 billion

The rest are just chump change,comparatively,but interesting enough BOA makes more profit than Goldman Sachs.

When you think about it,the founders of all of those groups all started out dirt poor and some living in slums and look what they parlayed into.

BOA was Bank of Italy in California,little small local bank,when the fires devastated the city,the owner of BOI pulled his horse and buggy up to a street corner and started loaning out cash out of a metal box,so people could rebuild their lost homes.

That started the home loan business.

What is even more interesting,ask the employees of BOA and I have never met one that knew the history of the bank they are working for.

Not Detroit but on topic and set in a Detroit-esque city, check out The Bank of Dave [Streaming on Netflix].

^ pretty good movie

I had a friend who’s family was in the banking industry,in the 20s -30s - 40s if you wanted to set up a local bank in a small town,you would call his father and that’s what he did.

Those were the days when we invested in people and communities and built a country,not like today where people are numbers on a spread sheet.

There was still profit left over otherwise these institutions of today would have never achieved the status they have today.

My friend in England lives in a small village outside of Liverpool,if you want to take out a home loan or bank loan,the local bank manager comes to You house and discusses it over tea.

Interesting enough he sued a large international bank during the mortgage meltdown for fraud and deceptive practices,he lost and was handed a $750,000 bill from the bank’s attorneys,2 years later the UK government sued that same bank under the same grounds and won a multi billion dollar settlement.

That whole underlining theme in that movie reminds me of the stories that came out of Detroit in the early days,like with Tucker and what lengths the established status quo will go to protect themselves.

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Originally Posted by 401don

2nd largest in the mid-west with all of 30-50 employees. I wonder how big the 3rd largest is?

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Goldman Sachs is a large-scale investment bank, not a regular commercial bank. Their branch offices are essentially customer support and sales offices. If AAM wants to drop $100 million to buy a controlling interest in Flex-n-gate, they go through Goldman Sachs.

At the branch offices they aren't managing portfolios or setting up complex investment instruments, that's done at the main office. Also, with a regular commercial bank, you need floors of regulatory experts making sure you are following local banking laws. That doesn't apply to investment banks.

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Originally Posted by JBMcB

...floors of regulatory experts making sure you are following local banking laws.

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Hence, 'Bowling for Bailouts' when capitalist socialism becomes necessary.

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Originally Posted by JBMcB

Goldman Sachs is a large-scale investment bank, not a regular commercial bank. Their branch offices are essentially customer support and sales offices. If AAM wants to drop $100 million to buy a controlling interest in Flex-n-gate, they go through Goldman Sachs.

At the branch offices they aren't managing portfolios or setting up complex investment instruments, that's done at the main office. Also, with a regular commercial bank, you need floors of regulatory experts making sure you are following local banking laws. That doesn't apply to investment banks.

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Which is why it's kind of silly to say it's the 2nd largest in the mid-west the day after it opens.

Goldman didn't actually need a bailout and resisted the federal money. However the feds didn't want investors to know WHICH banks needed the infusion of cash, which would have likely caused a run on said banks and eventual total failure, so they forced every bank to take TARP funds.

For all the poo-pooing if federal "bailouts"... In total, the government provided $245.1 billion in TARP assistance to banks and recouped $275.6 billion, for total gain of $30.5 billion. So the taxpayer actually profited off the financial crisis when all was said and done. Enough on the history lesson through...

A major financial institution setting up a new office downtown rather than Troy or Birmingham is actually a big win. Particularly when it's one of this size. It means they don't think being in Detroit will turn off talent from working for them. It also bodes well for other firms like Schwab or Morgan Stanley to open branches in the city as well. Financial institutions have been scattered throughout the metro area for decades, it would be great to see them all return to the city's core.

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Originally Posted by K-slice

Enough on the history lesson through...

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Treasury reports different results but who's counting?
About TARP | U.S. Department of the Treasury

Scroll down to page 22 for a breakdown of TARP funds related to the banking sector.

https://crsreports.congress.gov/product/pdf/R/R46277

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Originally Posted by K-slice

Goldman didn't actually need a bailout and resisted the federal money. However the feds didn't want investors to know WHICH banks needed the infusion of cash, which would have likely caused a run on said banks and eventual total failure, so they forced every bank to take TARP funds.

For all the poo-pooing if federal "bailouts"... In total, the government provided $245.1 billion in TARP assistance to banks and recouped $275.6 billion, for total gain of $30.5 billion. So the taxpayer actually profited off the financial crisis when all was said and done. Enough on the history lesson through...

A major financial institution setting up a new office downtown rather than Troy or Birmingham is actually a big win. Particularly when it's one of this size. It means they don't think being in Detroit will turn off talent from working for them. It also bodes well for other firms like Schwab or Morgan Stanley to open branches in the city as well. Financial institutions have been scattered throughout the metro area for decades, it would be great to see them all return to the city's core.

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Its a sword that swings both ways - they can whisper into the wind and influence Moody who sets the cities credit rating to increase or drop,which in turn gives them a lot of power in the city or over it.

Actually 10 fold over the current players,they can direct investments into the city and create a return or away from it.

My guess is if they are basing there,it’s not because of the view,they have a plan.

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Originally Posted by K-slice

...TARP funds related to the banking sector.

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Not my area of expertise. Does 'banking sector' exclude investment banks?

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Originally Posted by Henry Whalley

Not my area of expertise. Does 'banking sector' exclude investment banks?

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‘Zombie Offices’ Spell Trouble for Some Banks - The New York Times [[nytimes.com)