On August 21, local time, Goldman Sachs said it was considering selling some of its wealth business, refocusing the company on serving the super-rich rather than mass-market high-net-worth clients.。

Goldman Sachs said it was evaluating alternatives to personal financial management (PFM) in its Registered Investment Advisors (RIA) unit, which manages about $29 billion.。

In the past two years, Goldman Sachs has been constantly adjusting its internal business.。

Last year, CEO David Solomon restructured the company into three divisions and scaled back ambitions in the consumer business, which has lost $3 billion in the past three years.。At the same time, Goldman Sachs also cut its Marcus online retail banking business.。This year, Goldman Sachs sold its online lending business GreenSky, which it acquired in 2021.。

Now, Goldman Sachs is back on RIA。Stephen Biggar, an analyst at Argus Research, said: "This is part of an overall restructuring of Goldman Sachs aimed at returning to the fundamentals of the company.。The RIA serves high net worth individuals in the mass market.。"They can't create a path to profitability and scale for RIA," Bigger said.

PFM is Goldman Sachs in 2019 with 7.Established after the $500 million acquisition of California-based United Capital Financial Partners。RIA managed about $25 billion at the time。The purpose of Goldman's acquisition is to expand its client base so that it is no longer limited to the super-rich.。

The deal brings more than 200 financial advisers to Goldman Sachs, provides financial planning for clients known in the industry as the "mass affluent," and further expands Goldman's wealth management and consumer lending businesses, but the division still represents a small portion of the bank's wealth business.。

Goldman's private wealth arm currently manages about $1 trillion in assets for ultra-high net worth clients who hold $60 million and more in investable assets.。High-net-worth individuals, clients within the business lines Goldman is considering selling, typically have about $1 million to $10 million in investment assets。

Although Goldman Sachs would like to serve more of the "little rich," but unfortunately with little success。Now, Goldman's wealth business has lagged behind multiple competitors, including Morgan Stanley。

Morgan Stanley CEO James Gorman previously built up his wealth management unit through a series of acquisitions that generated steady fee income for the company.。Among the most successful acquisitions was Morgan Stanley's acquisition of online trading platform ETrade in 2020, where many of the bank's core clients are high net worth clients rather than the super-rich that Goldman Sachs is targeting.。

Goldman's profit plunged 60% in the second quarter to its lowest level in three years.。The profit decline was mainly due to writedowns on consumer business and real estate investments.。

In the face of "ugly" performance, Solomon bears the "burden" of reversing the fate of Goldman Sachs.。Goldman Sachs shares have risen 50% since Salomon became CEO in October 2018, while the KBW Nasdaq Bank of America Index (BKX) has fallen 23% over the same period.。

While Solomon is cutting back on Goldman Sachs' internal high net worth client-related services, the company is planning to expand its core wealth business to serve ultra-high net worth clients。

Goldman Sachs chose to strengthen its "old bank" mainly to "seek stability."。S. banks compete to serve the super-rich by offering brokerage, mortgage and other services, as well as estate and tax planning。Serving the super-rich tends to generate more stable income than other volatile Wall Street businesses such as investment banking and trading, which are closely related to other economic activities。